FHB Finance

At that LVR it's kinda irrelevant, beggars can't be choosers, but I have done some comparisons (based on FHB $500K purchase price for comparison only);
LMI premium with 98% LVR at 3.84% Variable = $15,240.42
LMI premium for different mainstream lender that has variable rate of >5% = $15,627.77
$387.35 CHEAPER than a mainstream lender.

 

When it comes to high LVR loans it's important to look at what your medium to long term property goals are. Unless you are going to come by a significant amount of cash or purchase in a high growth market you are essentially 'stuck' (unless you pay LMI again) with your current lender until the LVR is below 80%.

Therefore, I encourage you to not only way up the interest rate, cost of LMI but also whether the product is going to allow you to achieve your goals until you hit that magical 80% LVR.

Another thing to consider is that a lot of lenders price better at 90% inc LMI. It's worth trying to keep your LVR below this to not only reduce the LMI premium, but also to increase the number competitive products available.

Any good broker should be working through these potential scenarios with you to ensure you get a suitable product which not only suits today but hopefully until you at least reach the magical 80% mark.

 

Thanks all for your help. With a combined income of 150k; no debts & no kids is a property purchase of 600k feasible? 55k deposit and around 17k mortgage insurance would bring the loan to 562k = 93.7%. Is this within the realm of possibility?

 

I think getting you a loan would not be suitable at this point of time. You would need more deposit.