How is LMI Calculated?
The Lender’s Mortgage Insurance calculation is based on the size of your deposit and your loan amount. If you borrow over 80% of the purchase price of the property, you are likely to need to pay an LMI premium.
How do I avoid paying LMI?
- Use a financial gift.
- Take advantage of government schemes.
- Save a larger deposit.
How to use the calculator and information required
To use our LMI calculator, there are a few key pieces of information you will need to provide:
- property value
- loan amount, and
- whether you are a first home buyer.
- LMI is a type of insurance you can expect to pay if you borrow more than 80% of your home’s value.
- LMI protects the lender – not the borrower.
- You don’t need to arrange LMI yourself – we will sort it for you.
- It’s possible to save on LMI by saving a bigger deposit.