LMI is relatively costly for 95% loans.
The cost of LMI varies according to:
Mortgage insurer: there are only a handful of mortgage insurers in Australia and they all have slightly different premiums
The loan amount: LMI is calculated on a tiered scale, the higher the loan amount, the higher the premium
The deposit amount: the lower the deposit, the greater the LMI
Type of savings: an applicant that contributes genuine savings (or has a satisfactory 6-month rental history) will incur a lower LMI premium than an applicant who has non-genuine savings
You can use our Lenders Mortgage Insurance Calculator to get an estimation of how much you could save by avoiding mortgage insurance.