Got a question about LMI, we got you covered
Calculate your LMI costs here.
LMI or lender’s mortgage insurance is a kind of protection for a lender in case the borrower defaults on a loan and is required for most loans with less than a 20% deposit.
Normally, if you are unable to pay deposit up to 20 per cent of the property price, you will have to pay LMI in QLD. However, you should know that LMI premium varies from one lender to another and it is also based on your loan to value ratio.
The best way to find out is to use the LMI calculator and compare LMI premium charged by various banks. It allows you to find the best deal available in the market with cheaper LMI premium. Before diving deep into that, let’s take a look at how to secure the best deal and if your mortgage insurer is willing to approve the loan.
Is lenders mortgage insurance a one-off payment?
Yes, lenders mortgage insurance is a one-off payment, paid during the settlement of the loan. It is not required to be paid regularly like your mortgage repayments, so you’ll need to factor the lump-sum LMi payment into your budget before buying a house.
Loans with a deposit of less than 20% will usually require you to pay lenders mortgage insurance.
Is lenders mortgage insurance refundable?
Lenders mortgage insurance (LMI) is not refundable, at least not for loans settled after 2012. So if you switch to another lender or exit your home loan entirely, you won’t be eligible for a lenders mortgage insurance refund. To avoid paying lenders mortgage insurance entirely, try to pay a deposit of at least 20%.