I am not a mortgage broker but have a pretty good track record of getting 97% loans (includes LMI capitalised).
I just had one done recently where I am only tipping in a 5% desposit, legals and stamp duty. I will be in the deal for about 21.5K.
The key to getting past people like Genworth (mortgage insurer) is cash flow. I find that I am getting the deals where others are being refused primarily because:
1. I tend to present my all my financials - i.e. rents, margin loans, credit cards, shares, assets (includes stuff you have paid off), mortgages, company financials up front. Very rarely do them ask me for any...in otherwards I bamboozle them with paperwork.
2. I spread my mortgages and cash in 100% offsets across multiple banks.
3. I am fortunate to have a great cash flow....this is one of the biggest triggers.
4. My loan history and loan applications on my CRAA does not have multiple hits. Once I make my mind I do not shop around for other lenders.
5. Where possible I get LMI approval in principle prior to buying something. This way I can go to an auction pick up something and still be able to do a 5% loan. If I buy at auction so long as the valuation stacks up....I will be able to get a 97% lend.
I was told by my lender the insurer now understands me and the next loans will be quite easy.
Incidently my LMI on a 255k loan on a 263.5k buy price was around $5650. I have another loan at 97% approval in principle for 200k and the LMI was about $3800.
To me LMI is just a cost of doing business. Over 5 years I will get 40% of the cost back via tax deductions.