If you are borrowing more than 80% then most borrowers will have to pay Lender's Mortgage insurance. Mortgage insurance protects the bank, not the borrower. Apart from government Stamp Duty, Mortgage insurance is quite often the largest cost involved in the purchase of a property.

Most lenders will charge the Mortgage insurance premium directly on to the borrower. Mortgage insurance rates vary between approximately 0.6% of the loan amount up to around 3.3% if you are borrowing 100% home loan. For example at 90% a loan amount of $500,000 this can equate to approximately $7,000 to $8,000 ( and possibly more) depending on the lender and mortgage insurer.

How to save on Mortgage Insurance

For borrowers with strong income or strong combined income then we may be able to negotiate a waiver of mortgage insurance for you. Alternatively you still may be able to borrow at 85% without mortgage insurance for a small increase in the interest rate.

Call us on 1800 888 850 to see if you fit into this criteria. One call could save you thousands of dollars