Question on LMI calculation

Hi all
Can you someone explain how bank calculate LMI when you bought an off-plan land and construction done 6 months later?

I got loan (90%) for my land like 6 months ago, and trying to get the loan for the construction. The loan amount for construction is 20K more than the land loan amount, but we are going with 90% loan like before. The bank is now calculate as below

LMI = LMI of (Land Loan + Contruction Loan) - Land LMI amount

Is this how bank calculate LMI if its with the same bank. I am trying with ANZ Bank.

Thanks.

That looks alright to me. Do you have a different opinion?

So do you have one loan or now two?

Not to me. My land loan is different than construction loan. Why bank summing them together to calculate the LMI?

Have one for land. Trying to get another for construction.

This is the formula you could be playing with right now at a time of rapidly shifting home values, rather than worrying about mortgage insurance issues:

Equity = property value - outstanding loan amount

Usually your LMI on the land will be refunded on the construction LMI. I would get a mortgage broker to explain this to you.