| Overview |
|---|
flagFounded: Operating in Australia since 2012 |
businessOwned by: Lloyds Ltd in London via a Bermuda subsidiary |
monetization_onFinancial Strength: Standard & Poor’s A+ – Moody’s A1 |
securityLenders they support: Westpac Bank, Rams Home Loans, St George Bank, Bank SA, Bank of Melbourne |
pie_chart_outlinedMax LVR: 95% LVR |
account_balanceLMI Capitalisation: 97% LVR |
beach_accessLMI Premiums: Compare using our LMI calculator | See below for Arch Capital’s LMI table |
In 2015, Westpac shocked the share market and the mortgage industry by ditching their previous Lenders Mortgage Insurance (LMI) provider Genworth in favour of Arch Capital, a Bermuda-based mortgage insurer that was previously almost unknown in Australia.
Arch Capital insure Westpac Group home loans that are over 90% LVR or 90% of the value of the property that you want to buy.
The good news is that Arch are bringing much needed competition to the LMI market which may eventually mean lower LMI premiums for Australian borrowers.
How does Arch Capital’s LMI compare?
They’re great at
- Approving loans if they pass Westpac’s policy
- Company and trust loans
- Considering rent as genuine savings
But they’ve got some drawbacks…
- LMI is typically more expensive with Arch Capital than with other providers
- They don’t lend to investors
- Sometimes they will decline loans that Westpac approves
Talk to one of our expert mortgage brokers to find out if Arch Capital is right for you.
Call us on 1300 889 743 or complete our free assessment form online.
Who makes the rules?
Westpac and Arch made an agreement under which Arch has adopted most of Westpac’s lending policies rather than adopting their own.
As a lender you can get a mortgage insurer to approve more loans for you than other lenders but it comes at a price.
Specifically, Arch charges higher LMI premiums to allow for these special lending policies.
Meanwhile Westpac approves 80% – 90% LVR loans through their in house mortgage insurer so they’re effectively collecting on the premiums for much lower risk.
Arch Capital’s LMI Premium table
| Base LVR Bands | $0 – $300,000 | $300,001 – $500,000 | $500,001 – $750,000 | $750,001 – $1,000,000 |
|---|---|---|---|---|
| 90.01% – 91% | 1.85% | 2.10% | 3.21% | 3.21% |
| 91.01% – 92% | 1.85% | 2.10% | 3.34% | 3.36% |
| 92.01% – 93% | 2.23% | 2.46% | 3.48% | 3.48% |
| 93.01% – 94% | 2.23% | 2.46% | 3.60% | 3.60% |
| 94.01% – 95% | 2.49% | 2.77% | 3.74% | 3.74% |
| 95.01% – 97% | 2.49% | 2.77% | 3.74% | 3.74% |
Can Arch Capital offer you a cheap LMI premium?
Not sure which home loan is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.
