24 Aug 2021
Which Banks Waive LMI for Accountants?
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Lenders Mortgage Insurance, also known as LMI, is a fee charged by mortgage lenders if you are borrowing more than 80% of the purchase price of your property. It helps protect the lender in case you default or cannot make your loan repayments. There are two ways to pay LMI:Â
Your lender calculates your LMI as a percentage of your loan amount.Â
Each lender has its own method of determining LMI. But, in general, there are a few factors that determine how much your LMI costs:
Most lenders require a deposit of at least 20% if you want to avoid paying LMI. However, there are some cases where it may be waived or discounted if you meet specific conditions. Some of these conditions include:
If you have questions about how LMI is calculated or how much LMI you will have to pay on your home loan, the experts at Mortgage House can help.Â