Hi all,
This is probably one for the brokers, but figured I'd post it for everyone.
I recently just visited a website I hadn't been to in about 6 months - the PMI Lender's Mortgage Insurance website You put in the postcode of the suburb you want, and the location wizard tells you if PMI will underwrite loans over 80% in that suburb.
When I last visited, PMI still wasn't providing mortgage insurance (LVR's over 80%) on properties in inner city Sydney, Melbourne, and Brisbane. If you typed in a postcode in these areas, the wizard would say that it does not recognise the suburb, as it was not on a list of postcodes PMI allowed.
When I visited today, PMI is now going to 90% in areas that 6 months ago they were not, including Syd (2000) and Brisbane (4000, 4006) CBDs as well as the Docklands (3008) in Melbourne.
LMI companies used to get involved in lends over 80% in these areas, only ceasing the practice in 2003/2004 when CBD apartments were being snapped up en masse. Obviously at the time they didnt believe these properties were sound investments, and so weren't prepared to underwrite the mortgages to 90%.
My question is this - does the fact that PMI has changed their policy mean they believe the worst is over in these areas?
Jamie.
This is probably one for the brokers, but figured I'd post it for everyone.
I recently just visited a website I hadn't been to in about 6 months - the PMI Lender's Mortgage Insurance website You put in the postcode of the suburb you want, and the location wizard tells you if PMI will underwrite loans over 80% in that suburb.
When I last visited, PMI still wasn't providing mortgage insurance (LVR's over 80%) on properties in inner city Sydney, Melbourne, and Brisbane. If you typed in a postcode in these areas, the wizard would say that it does not recognise the suburb, as it was not on a list of postcodes PMI allowed.
When I visited today, PMI is now going to 90% in areas that 6 months ago they were not, including Syd (2000) and Brisbane (4000, 4006) CBDs as well as the Docklands (3008) in Melbourne.
LMI companies used to get involved in lends over 80% in these areas, only ceasing the practice in 2003/2004 when CBD apartments were being snapped up en masse. Obviously at the time they didnt believe these properties were sound investments, and so weren't prepared to underwrite the mortgages to 90%.
My question is this - does the fact that PMI has changed their policy mean they believe the worst is over in these areas?
Jamie.
