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Westpac dangles LMI carrot

by Staff Reporter7 minute read
The Adviser

Staff reporter

The battle for market share amongst the majors has intensified with Westpac announcing that it will subsidise the standard LMI premiums for certain customers.

The bank will effectively reduce the cost of Lenders Mortgage Insurance premiums for those borrowers with a loan to value ratio between 85 and 90 per cent.

According to a statement by the bank, this offer will apply to all full approval applications submitted before 30 June 2011 and unconditionally approved by 31 July 2011.

The offer is also available for both Premier Advantage Package (PAP) and non-packaged customer applications provided that all other lending policy requirements are met.

For example, those that apply for a $400,000 loan at 90 per cent LVR will no longer face an LMI premium of 1.53per cent, but rather 1.24 per cent, which equates to a potential saving of $1,160.

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