The LMI is only required when the deposit is less than 20% of the price. Although the cost of the LMI is paid by the landlord, your coverage protects the lender. Yes, first-time homebuyers can be exempted from LMI if you qualify for the First Mortgage Deposit Program. The cost of the LMI premium depends on the amount you borrow and the value of the property, as well as other factors, such as your employment and the type of loan you get.
The LMI is a one-time payment that can be included in the total cost of your loan or paid in advance at the time of settlement. The first step to obtaining a low premium is to understand how the LMI premium is calculated and then to determine if there is anything you can do to qualify for a cheaper premium. As psychologists, you may be able to borrow up to 90% of the value of the property without having to pay mortgage insurance to lenders. If you have a large deposit and are in good financial position, you may be eligible for an 85% non-LMI mortgage loan.
As a medical professional, you can take advantage of LMI and LVR exemptions of up to 95% with CBA doctor home loans. In general, the LMI is calculated on a sliding scale, so the more you can contribute to the deposit, the lower the loan-to-value ratio and the lower the LMI you'll pay. In addition to the LMI exemption, doctors can also get significant discounts on their mortgage loans and investment loans. The exact cost of the LMI varies from lender to lender, so it's worth talking to your Smartline advisor for more information.
Some mortgage insurance companies offer a 25 to 33% discount on the LMI premium for those who buy their first home.