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Are there lenders or other options available instead of having to pay mortgage insurance …we need to borrow about 84 -85% but the insurance is so expensive?
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Madly. Hi. There are Lenders that will go to 90% without Mortgage Insurance if one of the borrowers is in a Specialist occupation ie Doctor, Dentist etc.
if you would like to touch base with me, I could advise further.
Regards
Ken Olds
1300 ASK KEN
Hi Maddy,
There are a couple of products out there that have 85% no LMI (mortgage insurance) but these rates are often a little higher in rate so that you, in fact, pay a little more than the mortgage insurance in the long run (each case is different as you could understand).
84-85% bracket is a lower bracket which means the risk is much lower than a 95% loan. So it may not be as expensive as what you may think.
It's also a one off fee not an annual premium this is sometimes misunderstood. The mortgage insurance can also be added to the loan as well so it is not an additional expense you need to pay.
Lenders all have different premiums too, for example on a purchase of $800,000 at 85% lend I have mortgage insurance ranging from $5,500 to $13,000 so it pays to look at this too.
Always happy to give you any personal and specific information if you require.
Hope this helps!
Nicole :)
Pink Finance
Hi Nicole, thank you for the information.
Do you mind if I ask how much difference there is between the rates with no mortgage insurance?
ta
Hi Maddie,
It really depends on the lender. Here are some examples for you:
The lender that has the 85% no LMI policy (with very strict conditions) had a rate that 0.65% higher than their 80% rate and if you paid LMI it was 0.55% lower than the no LMI option. So whilst "no LMI" sounds good in theory you may pay extra in the Lon run.
There are some lenders who actually don't charge a higher rate for a loan in the 80-90% bracket.
There are other lenders for example that have a difference of just 0.05% from an 80% loan to a 90% loan.
This is the beauty of having a panel of lenders as we can go through all of this for you based on your specific needs but it sometimes doesn't allow us to give you definitive answers!
Hope this helps you further!
Nicole 😊
Dear Maddy,
Assuming you took the 85% product, If you intend to do some renovation and improve the property value after the purchase and if the price increases by more than 5%, we can always try to swap the product into a prime 80% product provided the value has gone up by 5%.
In that case the 85% no mortgage insurance can be a good solution for you.
regards
Hi Maddy,
I have a couple lenders on my panel who will do 85% lend with no LMI. I also have access to another product which offers a secured VISA card at home loan rates to pay for the difference.
Happy to provide more info if you are interested. Just click on my photo and get in touch through the "contact me" button.
Cheers,
Umit
Hi Ken, I'm a teacher and my partner works in sales and business development. Is a teacher considered a specialist?
Maddy, unfortunately a Teacher would not qualify for the no LMI rule that I had in mind, however it does qualify you for some good introductory rates through Teachers Mutual Bank.
If you would like to send me a little detail on your situation (size of loan / deposit etc) to my email 'finance@AskKen.com.au' then I can give some personal advise and calculate some numbers for you. I do not charge for my services, so don't be concerned about that.
Hope to speak soon
Best regards
Ken Olds
1300 ASK KEN