I have the 15% plus the cost to buy a property, $850,000 – is there a way around having to pay mortgage insurance?

Hi Ben,

Depending on your overall situation and or your occupation there are a couple of lenders that don't charge Lenders Mortgage insurance at 85% loan to value ratio. These lenders may charge a premium on the interest rate for taking the extra risk of not applying LMI to your loan so you would need to weigh up the LMI amount vs the possible increase in repayments.

Lenders such as Citibank and Pepper both offer products that require no LMI at 85% but as to whether they would suit your specific needs, this would require investigation.

I would suggest sitting down with a Mortgage broker who can review your situation and then help you apply for a loan with a lender that will suit your requirements.

If you have any questions please feel free to reach out.

Hi Ben,
Nathan is correct, it may be possible to avoid LMI if you are one of the professional occupations that some lenders accept as lower risk. It may also be possible to go with a lender that doesn’t charge LMI up to 85% LVR, as stated though you generally get charged higher fees and a higher interest rate by these lenders.
If you would like to sit down for a full assessment, I would then be able to compare the options available amongst the 29 lenders that I deal with.
Give me a call if you would like
0435.474.498
Regards
Scott

Hi Ben,

The guys of got this one well covered for you as there are options available. One thing that you do need to remember is that lenders mortgage insurance can be added into the loan amount so you can make the purchase without it coming from your 15% plus costs.

The lenders mortgage Insurnace is a reasonable cost when you are purchasing at that level but here are still ways you can minimise the cost.

A small reduction in your loan amount - compared to the property value could see you making even more savings (as the mortgage insurers premiums are tiered depending on the loan to value ratio.

So, In short - there are ways you can minimise your mortgage insurance costs but the only sure fire way to avoid mortgage Insurnace is to contribute the full 20%.

I hope that is helpful.

Regards

Craig