Hello
I just received my home loan agreement from Westpac. I have a $320,000 on 95% borrowings on a property in Melbourne, they are charging me $7800 LMI
I find this strange becasue only last year I purchased a property same everything in except through RAMS and it is in Queensland and I only paid $4300 LMI
Can someone please make sense of this.. it is nearly double?
Should I shop around? are they ripping me off? has LMI rates gone up???
Hi there
Each State has its own Stamp duty on LMI premiums but that would be a negligble difference.
Also each lender has its own scales so your MB should shop around for you to see what rate they can get.
The LMI With Westpac is about right for a 95% LVR and i think your figure for RAMS maybe incorrect.
The premium of $4300 sounds more like a 90% LVR.Richard Taylor | Australia's leading private lender
Hi. Some lenders structure the loan in a way that keeps LMI to a mininum which always helps. However there is a big jump in LMi premiums once you hit the magic 300k price point. So If you other property was slightly under or only slighlty over the 300k that may be part explanation for you.
Hi Richard
The Queensland property was at 95% purchase price was $335000 and loan was for $318000
Am I being resonable asking my broker to shop around? does that mean the loan can stay with Westpac still???
What is your professional opinion?
No if he stays with Westpac you are unable to dictate who they use as their LMI provider.
As i say i dont want to dispute what you say but feel the RAMS premium is incorrect.
Some lenders also vary the premium if the loan is IO or P & I but not to that extent.
Richard Taylor | Australia's leading private lender
I am surprised your M.B. did not at least provide you with an estimate prior to the application but agree with Richard re the Rams LMI
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