A simple way of reducing the cost of your mortgage is by reducing your LMI. For a $450,000 loan at 90% Loan to Value Ratio (LVR), you’ll have to pay up to $9,752 in LMI.
Although there are no LMI home loans, you may not qualify with most lenders because of your employment situation. There are other ways to reduce your LMI though.
The larger your loan size and amount, the higher will be your LMI. By adjusting the loan size and loan amount, you can potentially save thousands.
For example, you can easily save up to five thousand dollars or more by reducing your loan size from 90% to 85%.
Also note that different lenders and insurers have different LMI premiums. By choosing the cheapest LMI provider, you can essentially avoid a huge mortgage premium.