Borrowing more than 80% of the purchase price of your home? You're going to pay Lenders Mortgage Insurance on the loan. This calculator can show you how much LMI you’ll be paying over the course of the mortgage.
Lenders Mortgage Insurance (LMI) is one of the ways to help you achieve the dream of homeownership sooner without having the 20% deposit which is typically required by most banks and financial institutions.
With LMI, lenders may allow you to borrow a higher proportion of the purchase price, allowing you to purchase a property with a smaller deposit than would otherwise be required. It may also enable you to borrow at an interest rate that is comparable to a borrower who has a larger deposit.
Why does my loan require Lenders Mortgage Insurance and how can it benefit me?
By reducing the lender’s risk at the outset, taking out Lenders Mortgage Insurance allows you to purchase your dream home with as little as 5% of the purchase price. This can open up many possibilities for you as a new homebuyer – better location, larger house, ability to do renovations – simply put, LMI brings you that much closer to achieving your homeownership dreams, years earlier than you ever thought possible.