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From: Sergey Golovin


Come across this information from Westpack bank on AV Jennings site.

Serge.




Mortgage Insurance



In most cases, we can lend up to 80% of the security property value with no mortgage insurance. However, through the use of Lenders Mortgage insurance we can lend more than 80%. Mortgage insurance protects us against any shortfall incurred on a mortgagee sale of the security property, but does not provide any protection to you, the borrower.
For information about income protection insurance, click here.

Lenders Mortgage insurance is usually paid for by you, the borrower and is an additional upfront cost.

Through the use of Lenders Mortgage insurance we can lend up to:
· 95% of the property value for owner-occupied home loans.
· 95% of the property value for investment property loans. (Loans in excess of $350,000 generally require a greater minimum contribution and will need to be referred to the lender's credit area for approval).

This essentially means you need:
· Minimum 5% deposit for both owner occupied home loans and investment property loans, which must be genuine savings. OR
· Minimum 10% deposit for investment property loans, of which 5% must be genuine savings.

Genuine Savings typically means:
· Money saved over a minimum 6 month period in a bank account in your own name with regular deposits.
· Share certificates held in your name for a minimum 6 month period.
· Term Deposit held in your name for a minimum 6 month period.
· Sale proceeds from a previous property you owned.
· Accessible Superannuation.
 
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From: Sergey Golovin


Maximum loan amount withMortgage insurance
Purchase price Your deposit Home / Investment Loan
$100,000 $5,000 $95,000
$150,000 $7,500 $142,500
$200,000 $10,000 $190,000
$250,000 $12,500 $237,500
$300,000 $15,000 $285,000
$400,000 $40,000 $360,000
$500,000 $50,000 $450,000


Here is another Westpack feature.

Serge.
 
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