85% No LMI Home Loan

Do I Qualify for 85% No LMI Home Loan?

Our broad range of lenders offers home loans with an 85% loan-to-value ratio (LVR) with no Lenders’ Mortgage Insurance (LMI) fees. You can have your lender waive your LMI, given that you satisfy the following criteria:

• Purchasing a residential property within or near CBDs
• A professional in the education, child care, and health care industries
• Earning over a given income threshold
• Maintaining a clean credit history and a high credit score
• Having a financially stable career/employment

Nurses also have better opportunities and choices for 85% No LMI for No LMI Loans that are occupation-driven. We also offer this service for new property purchases and investments.

Which Banks or Lenders Offer 85% LVR Without LMI?

We mainly partner with St. George Bank which offers $1 LMI on loans up to $850,000 for First Home Buyers who want to purchase owner-occupied residential properties. 

St. George Bank also offers 85% LVR and no LMI without occupational restrictions or income threshold, as long as you’re a first home buyer.

Additionally, our team at JFS Financial Strategists can help you find a home loan of 85% LVR without paying for LMI. These include leading and small banks with varying policies and requirements. 

Moreover, banks evaluate 85% of LVR No LMI home loan applications on a case-to-case basis. Fortunately, our financial strategists at JFS specialise in LMI-free loans, so we can help you find a solution that suits you.

What Properties Can I Purchase With an 85% No LMI Loan?

It entirely depends on your lender. Some will accept most locations with few restrictions, while others are more conservative regarding property type.

Moreover, residential properties located near major cities and metro areas like Melbourne, Sydney, Gold Coast, and Brisbane have better chances of getting approval. 

What Loan Types are Available for 85% LVR With No LMI?

Available loan types significantly vary and entirely depend on the bank or lender. But technically, all loan packages and pricing mechanisms are compatible with a No LMI 85% LVR home loan option.

Depending on your situation, you can leverage all professional packages and loan products available at your chosen financial institution. With our strategists on your back, we can even help you get up to a 2.5% discount for your home loan and the 85% LVR and No LMI policy.

Registered nurses have better opportunities for occupation-driven and no LMI loans. We also offer Better Choice Gold Medico for an 85% LVR no LMI loan benefit for nurses. Speak with us today to know more about how you can avail your first no LMI loan as a health practitioner.

If you have a strong application strength, we can even help you find lenders willing to waive your application fees or ongoing loan package fees.

But First, What Does LMI Stand For?

In a nutshell, Lender’s Mortgage Insurance (LMI) is insurance given to banks by a third-party insurance provider that protects them in case of loan default. In this case, the customer must sell their loan security or property to pay for the loan.

That means you will have to pay a premium to offset the risks the bank is carrying due to the low deposit amount. For most banks, reaching a loan-to-value ratio higher than 80% requires you to pay for LMI.

LMI Rates For an 85% LVR Home Loan

Here are typical LMI rates for certain home loan amounts we took from one of our partner lenders:

• Home loan amount up to $300,000 – 0.7% LMI
• Loan up to $500,000 – 0.97% LMI
• Up to $1,000,000 – 1.53% LMI

For loan amounts higher than $500,000, the interest rate payments may outweigh your LMI fee. We recommend having a mortgage broker negotiate an interest rate rather than opting to waive your LMI premiums on large loan amounts.

First home buyers can also apply for grants and improve their chances of paying as little LMI and stamp duty as possible.