How is Lenders Mortgage Insurance (LMI) calculated?

how is lenders mortgage insurance calculated

Estimate your LMI

Genworth LMI Premium estimator disclaimer

While every effort has been made to ensure the accuracy of LMI premium quotes, the results should be used as an indication only.

All premium quotes are estimates only and based on the information provided. They are not an indication that Genworth Financial Mortgage Insurance Pty Limited (GNW) has approved the LMI risk. Premium quotes may vary for a number of reasons including but not limited to the LMI product and the purpose of the loan.

As a result the ultimate premium payable may differ from the premium quote.In no event shall GNW or any of its related entities be liable to any entity for any direct, indirect, special, consequential or other damages (including, without limitation, any lost profits, loss of opportunity, loss of revenue, loss of anticipated savings, business interruption, loss of information or programs or other data on your information handling system) that are related to any incorrect or inaccurate use of this premium quote service or that are directly or indirectly suffered in connection with the use of, or the inability to use, this premium quote service, even if GNW or a GNW authorized representative has been expressly advised of the possibility of such damages.

This estimator is to be used in conjunction with the product parameters outlined in the latest GNW

Rate Card. GNW reserves the right to make amendments at any stage without prior notification.

Unauthorised use of this premium quote service is strictly prohibited.This disclaimer is the be read in conjunction with the Genworth Terms and conditions .

How is LMI calculated?

LMI is calculated as a percent age of the loan amount and your LMI will vary depending on your Loan to Value Ratio (LVR) as well as the amount of money you wish to borrow.

The percentage you’re required to pay increases as the LVR and loan amount increase, and usually goes up in stages.

Lenders Mortgage Insurance costs differ depending on the loan, lender and the LMI provider. The factors that determine the cost of your LMI can also include:

  • Whether your property is owner occupied or not - it is believed that you are less likely to default on a loan if the property is also your residence.
  • If you are self employed or paid as a PAYG employee.
  • Whether or not you have genuine savings.
  • Whether or not you are applying for the First Home Owner Grant (FHOG).

Contact Mortgage Choice today to chat with a home loan expert and find out exactly how much LMI you will need to pay.

Stamp duty and taxes on LMI

Source: www.mortgagechoice.com.au

Category: Credit

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