83% LVR refinance

[bbinvest]

Hi Everyone,

I am currently going through the process of refinancing one of my properties to get rid of the LOC I no longer need (or want). I got quite a long way down the process with a lender and then it all come to a halt due to LMI. The application was approved by the lender itself, valuation came back fine but the mortgage insurer knocked it back for reasons known only to them.

Based on the recent bank valuation and my current loan balance, the LVR will be 83%; just over the usual 80% threshold.

Is there a lender out there who will do a full doc refinance at an 83% LVR without requiring LMI?

 

[Rolf Latham]

Hi BBI

In general in todays climate, no

U have a number of options.

1. Have the val reviewed to see if u can get another 5 %
2. Move to another lender where u can get a higher val ( if possible)
3 Move to another lender whose LMI provider is kinder

ta
rolf

 

[Peter_Tersteeg]

Is there are reason why you can't just switch your existing line of credit to another product such as a variable loan?

Is there a specific reason why your existing lender is no longer suitable? Are you actually increasing the existing loan?

Switching is usually a fairly minor process, doesn't require a new loan application, no valuation, no exit costs and usually just a variation fee of a few hundred dollars.

 

[bbinvest]

Hi BBI

In general in todays climate, no

U have a number of options.

1. Have the val reviewed to see if u can get another 5 %
2. Move to another lender where u can get a higher val ( if possible)
3 Move to another lender whose LMI provider is kinder

ta
rolf

Hi Rolf,

That's about that I thought, but enquiries yesterday turned up a lender who may do it, so I will speak further with them next week. Luckily we are only talking about a loan in the low $200k range and the difference between 80% and 83% LVR is about $10k.

They appear to agree with my logic that if I can get and pay back a $10k unsecured personal loan during the middle of the GFC when credit was tighter than it is now, an extra $10k secured over a good quality property is bugger all.

The original plan was to refinance at a 90% LVR to access the equity for further investments, but if LMI turns out to be a stopper, I will just look to refinance it with no LMI or switch with the current lender.

 

[bbinvest]

Is there are reason why you can't just switch your existing line of credit to another product such as a variable loan?

Is there a specific reason why your existing lender is no longer suitable? Are you actually increasing the existing loan?

Switching is usually a fairly minor process, doesn't require a new loan application, no valuation, no exit costs and usually just a variation fee of a few hundred dollars.

To be honest, the current lender is terrible. Expensive and crap customer service. I was looking to get a better product elsewhere and rid myself of them at the same time.

I was looking to increase the loan to 90% but if LMI is a no go, switching with the current lender might be the go. That said, if I can get through at 83% with another lender, I will do that.

 

[Rolf Latham]

Hiya


On that basis, if this was me, Id want to nail why LMI was a problem at 83 % before burning any more CRAA enquiries..........there might be something on your craa you should know that you dont .............yet.



ta
rolf