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If I borrowed 93% on a property purchase of 830k what would mortgage insurance cost and can it be capitalised?
Responses
Hi Bill,
Thank you for your question. Based on your figures the lmi premium would take the loan over 95% to approx 96.7%. Yes it can be done, with a few lenders able to go to 97% and 1 or 2 lenders able to go over this. It does however restrict the options and depending on the lender the difference in the actual premium can vary significantly. The premium based on your figures would be just under $30,000 but again you need to go with a lender that allows 97% with Lmi included.
I hope this helps, feel free to contact me if you have any questions.
Best wishes
Meiken Barnes
Assuming you have $94,000 savings/deposit and making many other assumptions the LMI premium will range from $28,000 and $35,000. This will also affect your end interest rate depending on which lender you choose.
Any further questions don't hesitate to ask.
