Quick Summary
Founded
1982
Lender type:
Major Bank
Westpac LMI services a range of lenders but predominantly lenders within the Westpac group.
If you have a small deposit, there can be significant differences between what Westpac will approve and what Westpac LMI will approve.
It’s fair to say that Westpac’s strategy is to approve 80-90% LVR home loan applications themselves and collect the premiums and then allow an external insurance to take on the risk of loans over 90%.
How does Westpac LMI compare?
Pros
- Rent as genuine savings
- They may consider 85% with no LMI (case by case and flavour of the month)
- Considering temporary residents
- Great interest rates on loans over 80%
- Accepting people on probation
- Capitalising LMI premiums
- They can consider lending over $1 million
- Can consider waived LMI for doctors and high income earners (including dentists, vets and lawyers)
- They use common sense when assessing joint debts
Cons
- Their LMI permiums are expensive
- Credit scoring is strict for people with a low asset position such as applicants that are recently divorced
- There can be different assessment and scoring methods for Westpac, St George and RAMS
- They rarely forget or forgive if you've missed repayments in the past
- As a large bank they have data on almost everyone in Australia which means they know a lot about your spending habits and credit history
85% no LMI
Over the last 15 years, Westpac has released various specials to entice new borrowers. One they are well known for is waived LMI for loans up to 85% of the property value.
They don’t have this special on all the time. It depends on the market, their funding position and the type of loans they want to attract.
It’s a great option for people who are saving to buy a property but don’t want to pay LMI. On a $500,000 purchase, it means you’re savings up to $25,000!
Other lenders sometimes offer a special like this from time to time so please refer to our 85% no LMI page for more information.
Westpac's LMI Premium table
| LVR | $0 - $300,000 | $300,001 - $500,000 | $500,001 - $750,000 | $750,001 - $1,000,000 |
|---|---|---|---|---|
| 81% | 0.45% | 0.58% | 0.74% | 0.76% |
| 82% | 0.47% | 0.60% | 0.74% | 0.76% |
| 83% | 0.58% | 0.64% | 0.96% | 0.96% |
| 84% | 0.67% | 0.83% | 1.02% | 1.08% |
| 85% | 0.72% | 0.88% | 1.17% | 1.24% |
| 86% | 0.84% | 1.05% | 1.34% | 1.35% |
| 87% | 0.89% | 1.08% | 1.44% | 1.45% |
| 88% | 1.05% | 1.17% | 1.50% | 1.57% |
| 89% | 1.38% | 1.66% | 2.27% | 2.32% |
| 90% | 1.49% | 1.97% | 2.41% | 2.50% |
81% LVR actually means 80.01% to 81% LVR
Should you apply with Westpac LMI?
Not sure which home loan is right for you? Our Home Loan Experts can help!
Talk to one of our specialist mortgage brokers by calling us on 1300 889 743 or by completing our free assessment form.
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