Remove Lender's Mortgage Insurance
When LMI may apply, and how a changing LVR can affect it.
Lenders Mortgage Insurance is a one-off cost that only benefits the lender. If your property has grown in value (or you've paid the loan down) so that your LVR is now comfortably below 80%, refinancing can put you into products with sharper rates and no further LMI drag.
Things to consider
- LMI paid at purchase is typically non-refundable when you refinance — it's about avoiding future LMI, not clawing back past LMI.
- A lender's valuation drives the LVR — not your Realestate.com.au estimate. A conservative valuation can leave you still above 80%.
- Under-80% LVR often unlocks a meaningfully sharper rate — compare the total cost, not just the switch fee.
- Some lenders will match a competitor's LMI-free rate if you ask — repricing before switching is worth trying.
Related equity uses
Three more ways homeowners commonly put usable equity to work.
Unlock an Offset Account
How offset accounts may reduce interest without changing the loan.
Switch to Fixed or Split
The trade-offs between rate certainty and flexibility.
Access a Redraw Facility
How redraw works and what accessing it may mean for your loan.
Explore whether using your home loan for this purpose may be appropriate — a Mortgage Freedom Review can help you understand the potential effect on repayments, total interest and your estimated mortgage-free date before you decide.
Results are estimates based on the information provided and stated assumptions. Savings, rates, approval and earlier repayment are not guaranteed. Credit approval, valuation, lender criteria, fees and product terms apply. Refinancing may not be suitable for everyone.
Submitting an initial enquiry for a Mortgage Freedom Review does not itself lodge a loan application. If a credit report or formal application may be required later, the responsible mortgage broker will explain the proposed step and obtain the necessary authority or consent.