Browse Forums Home Finance Re: Understanding mortgage broker calculations? 3Jul 10, 2018 9:11 pm On the figures provided there, the net proceeds of borrowing (i,e. what goes towards paying for the house) is $296K. On top of that, there's an 'extra' $7.7K added on to the loan for Lender's Mortgage Insurance, which means you're borrowing $303.7K to pay for $296K of house. Think of the LMI charge as an extra fee for having a deposit of less than 20%. Note also that "Lender's Mortgage Insurance" protects the lender, NOT you, in the event of default. So really, you're having to borrow extra money (and pay the extra interest etc.) to pay for somebody else's insurance. Unfortunately, that's how it works. Like with any service, they don't have to compete on price. They know the market rate for a particular service and offer it for a relatively same price. I am not a sparky… 1 3693 ask the surveyor for clarification would be the logical approach 1 15975 Broker here - legislation says that every true broker must put the clients best interests before theirs so in theory they must offer you the best options for you on their… 2 43734 |