Cost of LMI

[bennos]

Anyway to work out the LMI on a loan when the only information you have is the amount you can borrow? What are the factors that affect the price of LMI? One being the amount of money you want to borrow... what else? I'm just trying to work out some scenarios but have no idea on the amount to include for LMI.

Please use an IP worth 350,000 (LVR 90%) if you're giving an example

 

[mortgageman]

Hi Bennos,

The LMI amount can differ considerably depending on the lender that is being used, a factor which should be a consideration when choosing a lender. For estimation purposes you could use say 1.5% of the loan amount, although this would only be a rough estimate and some for some lenders would be considerably cheaper than this.

Kind Regards,

Cameron Perry
Perry Financial Strategies

 

[Peter_Tersteeg]

LMI does vary from lender to lender, and it can depend on several other factors such as the product. A property worth $350k @ 90% LVR means a loan of $315k.

ANZs LMI would be approximately 1.65% in most cases - $5,197.50

 

[bennos]

Thanks for the replies.

So if I work on 1.5%, give or take 473 bucks (see below) each way for 315K. That should get me a rough estimate?!

ie. 315,000 loan
at 0.0135 = 4253
at 0.0150 = 4725
at 0.0165 = 5198

 

[firstmillion]

Anyway to work out the LMI on a loan when the only information you have is the amount you can borrow? What are the factors that affect the price of LMI? One being the amount of money you want to borrow... what else? I'm just trying to work out some scenarios but have no idea on the amount to include for LMI.

Please use an IP worth 350,000 (LVR 90%) if you're giving an example

Hi Bennos,

Every MB has access to LMI calculator (a bank manager told me this). A quick google search found me this LMI calculator :

http://www.inmortgages.com.au/calclmi.htm

Hope this helps.

 

[firstmillion]

Check this out as well.

http://www.peachhomeloans.com.au/oncosts.htm

Cheers

 

[Peter_Tersteeg]

As previously mentioned, LMI rates tend to be lender specific. If you let us know which lender you're going through, we'll be able to give you an accurate estimate.