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85% No LMI

85% LVR No LMISaving the cost of LMI

85% LVR home loans with no LMI are available in Australia in 2012. This product is a niche with only 2 lenders providing this product allowing clients the ability to borrow up to 85% LVR with no Lenders Mortgage Insurance for both owner occupied property and investment property.

What is 85% LVR No LMI

The 85% LVR with no LMI is a policy whereby a lender allows you to borrow up to 85% LVR and not incur the cost of Lenders Mortgage Insurance (LMI).  This policy will save a potential borrower thousands of dollars in LMI costs which would have normally been paid.

Lenders who offer 85% No LMI

As mentioned previously there are only 2 lenders who lend up to 85% with No LMI. Both these lenders in Australia are banks. These banks don’t generally publicize this practice, but a well informed broker can point you in this direction if it is a suitable product for you. One lender will lend up to $1,000,000 whilst the other will lend up to $420,000.

Savings with No LMI 85% LVR

There are substantial savings in LMI costs when taking up a loan with no LMI at 85% LVR. The below example is a factual case comparing a loan scenario using St George Bank and a No LMI lender at 85% LVR.

St George Bank 85% LVR No LMI Lender
Loan amount $525,500 $525,500
Property Value $650,000 $650,000
Loan type Standard Variable Pro Pack Standard Variable Pro Pack
Interest Rate 6.06% 6.09%
Application Fee $0 $0

LMI Cost

$8,262

$0

The above example highlights the amount saved as $8,262 for the  same scenario between the 2 lenders. Using an 85% No LMI lender is cost effective and useful when buying or refinancing a property.

Loan types with 85% LVR no LMI

You can get almost all loan types with an 85% LVR with No LMI home loan. These can include any of the following:

  1. Standard variable
  2. Professional Package
  3. Fixed Rate home loan
  4. Basic Home Loan
  5. Line of credit
  6. 100% offset loan

One of these lenders will offer a fixed rate with a 100% offset home loan. This is a unique policy and feature which cannot be found with any other lender on the market.

Genuine Savings for 85% No LMI home loan?

You will not require or need any genuine savings for 85% No LMI home loan. Your deposit or funds can come by way of gift or sale of any other asset and therefore no minimum savings term is required.

85% No LMI Policy

You can use your 85% LVR No LMI home loan for both purchases and refinances. Further, this policy can be used for a residential property purpose or business purpose.

The property which is offered can be in the name of:

  1. Trust
  2. Company
  3. Personal Name/s

Mortgage Providers can assist you with any loan type requiring or not requiring any LMI. We are familiar with all lenders who offer 85% with no LMI and understand what their policy requirements are. Further, we can guide you through the specific product niches available within these lenders helping you make the correct choice of home loan product to suite your needs.

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