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LMI is calculated as a percentage of the loan amount. The percentage used is determined on the LVR and actual amount. There's tables of these values. On top of that, stamp duty and GST are also applied. If you're increasing by $350k but haven't paid LMI before, you'll be paying LMI on...

Let's face it: * Default rates are rarely more than 4%. * Property values generally don't fall over 20%. The insurers rarely touch the areas where they is any risk of this (CBA may not have postcode restrictions, but the credit scoring system still considers Cat 4 & 5 locations). Even if you...

I did some beer coaster maths once on LMI considering a number of figures (these are all speculative but the question marks indicate wild speculation on my part, the rest are somewhat supportable). Average property value = $400k Average LMI loan amount = $360k ??? Average premium collected (2%)...

The problem I have with LMI is how expensive it is. Over the past 10 years, LMI premiums as a percentage of the loan amounts have doubled. Default rates during that period have fluctuated but essentially stayed the same. The insurers risk can also be managed by having additional LVR...

I did manage to get a refund for a client once, I think it was back in 2005. Since then I haven't managed to do it again or heard of similar. A few lenders even let it be known that whilst the insurer may give a refund, they wouldn't pass it onto the borrower. I don't believe CBAs LDP has a...

No chance. The government got rid of early repayment fees in 2011 to make moving lenders easier and gave themselves a pat on the back for it. They were told to investigate making mortgage portable but it's never gone anywhere. There is a lot that goes on behind the scenes with LMI it it...

In this scenario it possibly would need to be pushed through. The subdivision changes the nature of the security property and in many cases the loan would be re-originated from scratch. If the assessor is lazy, they'd simply charge a whole new LMI premium.