95% with lmi capitalised?

Are there any banks that offer 5% deposit with the lmi capitalised?

 

A couple if it's for owner occupier purposes. Rates are expensive in this niche though.

FHLDS is one way some people are getting around this if they meet the criteria.

 

Is the cba or westpac one of them, if not could you let us know who? Its owner occupied and a first home loan. How much more expensive are the rates? Tired of renting at 500/week for ten years, so getting into the market by moving inland to a smaller town with less ridiculous house prices, likewise the lmi should be less than 5000. Found a place I'd like to make an offer on, but would need the lmi capitalised or would have to save longer which means renewing rental lease in sept for minimum 6 months, ( 26×500=$13000 down the drain) How does the deposit scheme get around the issue?
Thanks for replying

 

Neither the CBA nor Westpac capitalise the LMI above 95%.

Rather than try to figure this out yourself, why now one of the brokers on this forum? The FHLDS is oversubscribed with the major banks, but there are other lenders with it available and it avoids LMI altogether, with much cheaper rates.

 

Below is the link to the FHLDS, eligability is outlined there so if you fit within that criteria as a FHB etc then it is definately a great way forward.

As Peter has outlined there are only a couple of options in the 95%+ cap space with rigorous assessment, rates typically 1-2% higher, etc.
First Home Loan Deposit Scheme | NHFIC

 

I checked the eligibility of the FHLDS, but only my wife is a citizen so we dont qualify, thats too bad. I just checked and looks like its 10 to 14 months to get citizenship.

 

Well Rolf, I'm not asking for anyone to give up their lively hood, just looking for friendly advice on this property chat forum, which I have been given, I have no control on who responds or what they say, be it a broker or someone else, I'm going to ask the same questions to those who were nice enough to reply and I appeciate their input, thats why I came onto this forum, to chat about property...if I have done something taboo on this forum, I guess I thought this was a place to freely exchange information on this internet forum when I posted, and didn't realise that this is more of an introductory sales forum, no offense Rolf, and sorry Peter if I unintentionally put you on the spot, however I understood your response perfectly, which was confirmed by Rolf's. Thank you for your time Peter and Richard.

 

Hey mate

When borrowing 95% of the purchase, LMI is generally around 3% of the purchase price rather then $5k. Different banks different cost and could be higher then 3%.

 

Thanks Tony, 170000 x 3%= 5100, I'll keep in mind it could be higher.

 

Remember to add in the additional expenses of home ownership. Rates, insurance, strata fees (if applicable), water rates, maintenance etc

 

Thanks sqe, I've checked my budget. A couple months ago when I went into the cba they said I could service a 6-700k loan, so should I be able to cover 170k loan and its expenses. Just dont have enough to cover the lmi upfront at the moment.

 

what is the sweet spot with deposits and lmi capitalised now?

 

Rolf, the specificity was because I already had an appt booked this week with the cba and westpac to enquire, but I was unsure about the lmi capitalisation. Peter said there was a couple, so I was able to spend a couple hours today phoning about 30 different lenders off of the canstar website and found half a dozen. Thank you Rolf for adding views, it was helpful.

Suncorp,racq,g&c mutual,ing,bankaustralia were a few I found, anything I should be aware of with these particular lenders anyone want to share.