How Much Does LMI Cost?
Lenders Mortgage Insurance (LMI) protects a lender from situations where a borrower is not paying their scheduled loan payments and loan cases that result in foreclosure. LMI can be helpful to potential buyers with small deposits as it gives the lender security in the loan even if the deposit is not a full 20%. A $600,000 loan with a $60,000 deposit could result in an LMI that costs over $10,000.
LMI cost is calculated differently by all lenders, but there are free online resources that can be used for a rough estimate (https://www.helia.com.au/products/tools/lmi-fee-estimator). At Mortgage House, our specialists are equipped with all of the tools needed for professional LMI calculations and loan information to assist potential buyers with successfully purchasing their dream home. If you would like to learn more about our services or apply from the comfort of your own home, you can visit our webpage here.
A first-time home buyer that is approved for the First Home Loan Deposit Scheme (FHLDS) is exempt from paying for LMI fees, and if a buyer has a 20% deposit for their home, they are also exempt from the fees. Feeling overwhelmed? Mortgage House professionals have the experience and knowledge to assist buyers with all areas of purchasing a new home.
LMI Cost Conclusion
LMI cost is calculated differently by all lenders, but a great example is a $600,000 loan with a $60,000 deposit that may result in an LMI pricing of over $10,000.