85% No LMI Home Loans

At JFS Financial Strategists, we're Finance & Mortgage Brokers helping clients get into their home sooner with a 85% LMI Home Loan

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Qualifying for an 85% No LMI Home Loan

Which Banks or Lenders Offer 85% LVR Without LMI? With no Occupation restrictions.

We mainly partner with UBank which waives LMI on Owner Occupied Home Loans

with Principal and Interest repayments setup.

UBank 85% LVR and no LMI Home Loan product does not have occupational restrictions or income threshold, as long as you’re buying a home to live in.

Who Else Can borrow 85% No LMI Loan?

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.

People who work in the following professions:

Medical Professionals
Nurses & Midwives
Tax & Finance Professionals such as Accountants
Judicial & Legal Professionals such as Lawyers
Essential Workers such as Paramedics, Police Officer, Fire Fighters and Teachers
Engineering / IT Professionals
Defence Force

We have mixed of 8 Lenders on our Panel who could assist you.

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.

What other ways of avoiding paying LMI?

Guarantor Loan option

A guarantor loan allows a close family member, often a parent, to use the equity in their property as security for part of your home loan. This reduces the lender's risk and allows you to borrow up to 100% of the property value without paying LMI. The guarantor’s property acts as additional security, which means LMI can be avoided entirely, even with a small or no deposit.

Key points:

The guarantor is liable for the portion of the loan they secure if the borrower defaults.
Some lenders allow the guarantor to be released from the loan once the borrower has paid down the loan to an 80% LVR or less.

First Home Buyer / Home buyer Guarantee Scheme in each state

The Australian government offers the First Home Guarantee (formerly known as the First Home Loan Deposit Scheme), which allows eligible first-home buyers to purchase a home with a deposit as low as 5%, without the need for LMI. The government acts as a guarantor for up to 15% of the property’s value.

Key points:

Available to first-home buyers purchasing their first property for owner-occupation.
There are price caps based on location, so eligibility varies depending on the state or territory.
Borrowers must meet income thresholds (for individuals and couples).

What if I still need to pay LMI, is it a bad thing?

Paying Lenders Mortgage Insurance (LMI) can be a smart move for those eager to enter the property market sooner, especially in a rapidly rising real estate environment. While LMI is typically seen as an additional cost, it can actually help buyers by allowing them to secure a property with a smaller deposit, such as 5% to 15%, instead of waiting to save the full 20%.

One of the key advantages of paying LMI is the ability to get into the market earlier. In Australia's property market, prices tend to rise over time. If a buyer were to delay their purchase in order to save a larger deposit, they could face higher property prices in the future, making the wait counterproductive. By paying LMI and entering the market with a smaller deposit, buyers can take advantage of current property prices and potentially benefit from capital growth. According to some buyers' agents and financial experts, this can often outweigh the cost of LMI itself. For example, in hot property markets like Sydney or Melbourne, waiting an extra few years could result in paying significantly more for the same property

(Australian Broker News,Real Choice Finance).

Additionally, LMI can give buyers access to better properties in desirable areas that might otherwise be out of reach if they were forced to wait to save a full deposit. For many first-home buyers, this can mean securing a dream home in a location that might experience strong future growth (Domain).

Ultimately, while LMI adds to your loan, it can also be the key to unlocking homeownership sooner—especially in a market where property prices are on the rise.

Book a strategy session with us today.

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Our Recent Reviews

Jamie and the team at JFS Financial Strategists made the mortgage pre-approval process smooth and stress-free. He was efficient and completed everything quickly, which significantly eased the pressure. Highly recommend working with him for any mortgage needs.

Catherine Piasini

I've had some less-than-ideal experiences with brokers in the past, but Jamie and the team at JFS Financial Strategists were a refreshing change. They actioned our request with impressive speed and took the time to explain everything in detail, yet in a way that was easy to understand. Their professionalism and clear communication made the whole process smooth and stress-free. Highly recommend!

Keiran Piasini

Extremely impressed with Jamie’s expertise and level of service - highly recommended!

Jake Ward

Nick Hart

Frequently Asked Questions

How Much Deposit Should I Have?

Most lenders will require a 20% deposit for home loans and processing fees. That’s why we suggest having at least a 20% deposit so we can better negotiate the rates for your loan.

Otherwise, we can look for other solutions such as a Family Guarantee or government grants such as the First Home Loan Deposit Scheme (FHLDS).

How Much Will Getting a Home Cost?

Here is the breakdown of costs in processing or buying a new home. Note that your real estate broker may have more or fewer requirements and fees depending on several factors.

- Home loan deposit (we recommend a 20% deposit if you don’t have government schemes in place)
- Legal fees
- Lenders’ Mortgage Insurance (LMI), although we can help you negotiate for an 80% LVR with no LMI for home loans depending on your financial position.
- Lender’s Establishment Fees for Specialist Loans

Furthermore, your local council may require you to pay the following fees:

- Government Registration & Transfer Fees
- Due Diligence Fees (pest inspection, strata report, etc.)

Aside from legal and lending fees, you should also note labour costs, moving, and furnishing your new home. Don’t forget about living expenses and your monthly mortgage repayments.

What if I Can’t Make the 20% Loan Deposit?

Usually, you only need to have a minimum deposit of about 5-10% of the property value to purchase it.

But if you still don’t have that amount, we recommend opting for a family guarantee, especially if your parents have considerable equity in their property. Otherwise, paying for LMI should help you get finance as long as you and the house you want to purchase are eligible.

Why Do I Need a Mortgage Broker for Property Investing?

Having a time-tested and proven mortgage broker can help you:

- Thoroughly assess and determine your borrowing capacity.
- Understanding what documents you need to prepare when buying a property
- Make sure you have enough equity and set an appropriate property budget.
- Develop a long-term and sustainable financing strategy
- Establish a sustainable and reliable financing strategy
- Take you through different partner specialists (solicitors, tax and depreciation experts, mortgage brokers, and buyer agents)

Property investors should also walk away with an improved loan portfolio with our help at JFS Financial Strategists.

How Can I Tell if Property Investing Works for Me?

Before venturing into property investing, make sure you have:

- Extra cash flow after deducting living expenses and outstanding debts
- Saved enough equity or deposit in a property.

Besides, remember that investing incurs varying risks. So we recommend having an investor’s mindset and trying to mitigate the risks of investing by looking into what you will earn in an investment property.

That means going out of your way to make several enquiries just to ensure what you’re venturing into is right for you.

What is LMI or Lenders’ Mortgage Insurance?

When applying for a home loan, you should hear the term LMI or Lenders’ Mortgage Insurance from your bank or broker.

You pay your insurance provider a one-time fee when applying for loans above a specified Loan to Value Ratio (LVR).

LMI is required when the bank or lender is exposed to higher risk on your loan. What happens when you’re borrowing more for less deposit.

If you default on the loan and the bank sells the property at a loss, the LMI insurer will reimburse your lender for the loss. On your end, that means you can borrow more and purchase higher-valued properties. The only con is that you need to pay an LMI fee which increases along with LVR and loan amount.

Who Are We?

At JFS Financial Strategists we are big about saving you time and money so you could spend more time on doing what you love. We take over the project from start to finish, through research, reviewing the fine prints, negotiations with lenders and their credit managers, comparing rates and fees to achieve your goals.

How Much Amount Can I Borrow?

The amount and Loan to Value Ratio (LVR) you can borrow will depend on your capacity to repay the loan. In other words, your net income is gross income minus tax and other expenses you need to make.

Contact

North Strathfield, NSW

0401 855 096

JFS Advisory Pty Ltd ABN: 19 623 513 119. Credit Representative #427424 is authorised under Australian Credit License #387025

Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.

Cashback Offers: From time to time, we may run campaigns that include cashback in the form of cash gift cards. The gift card would be set to 25% of the total agreed dollar value, and distributed half yearly within the first two years. Cards will not be issued if loan facilities were discharged within the first 24 months.