Most lenders have the 80LMI thing where you go over it you pay. But do you pay more if you go more over the LMI.
For example: you have a LVR of 81 they charge you $1000, then your next property has a LVR of 91, they charge you say $6000.
Does this happen, and how bad is it like in percentage terms of property or loans?Christopher.
yep. the more the LVR the more they charge in LMI. THe charge of LMI increases nearly every 3 increments in LVR.
80-83 LVR = 0.5% of Loan amount for LMI
84-86 LVR = 0.75% of loan amount for LMI
87-90 LVR = 1%and so on and so forth. Differs from every lender!
Hope this helps
Joshua McEwen
Finance Broker – WAhttp://www.prestigeloans.com.au
Brokers Lic 1297
Licensee Brett ChristieThanks Josh that exactly what answer i was looking for.
I just stumbled across this page doing the daily check.
Josh – Your msg was a great little bit of knowledge. I’ve also been wondering if the LMI percentage increases with a higher LVR and if so, how much. So thanks for sharing.
Also as Josh mentions not only does the LMI percentage increase dependant on the LVR but also the premiums differ considerably from lender to lender even with the same mortgage insurer.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
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