To MBs out there, which banks provide LMI in-house? I know St George and Westpac do but I found out ANZ Bank do it as well. Is this true? Is LMI cheaper when banks self insure?
Banks self insuring LMI
- Thread starter Highlygeared
- Start date
Self insure is a bit missleading with most lenders. The lenders you've mentioned don't actually 'self insure', but they have their own packaging agreements with the major mortgage insurers.
This means that within certain parameters, they can set their own policies. Outside of these parameters the application is still forwarded to their insuer.
As an example, Westpac will forward an application for over $750k with a 95%LVR the their insurer, who I think is PMI. Below $750k the deal is simply packaged and the insurer underwrites it without looking at the individual applications.
Examples of lenders who really do self insure would be La Trobe or Liberty. The have a 'risk fee' instead of LMI (which costs about the same), but there's no insurer involved at all.
If you describe what you're planning, it might be easier to give you more specific guidance.
This means that within certain parameters, they can set their own policies. Outside of these parameters the application is still forwarded to their insuer.
As an example, Westpac will forward an application for over $750k with a 95%LVR the their insurer, who I think is PMI. Below $750k the deal is simply packaged and the insurer underwrites it without looking at the individual applications.
Examples of lenders who really do self insure would be La Trobe or Liberty. The have a 'risk fee' instead of LMI (which costs about the same), but there's no insurer involved at all.
If you describe what you're planning, it might be easier to give you more specific guidance.
Well im wondering where to refinance a loan (and increase it at same time), but i dont want the total of the loans to exceed $1 million if the same LMI provider is involved. To date, the companies whove done LMI for me are Citibank/Genworth and Westpac ('self insured'). That loan was well under $750K.
What LVR are you looking for?
Will the loan be against a single property or both properties?
Can you give a breakdown of your current property values and loan amounts?
Would the loan be a full doc or lo doc?
Will the loan be against a single property or both properties?
Can you give a breakdown of your current property values and loan amounts?
Would the loan be a full doc or lo doc?
95, lmi capitalised, single property, full doc.
Hi
One of us is misunderstood. Im trying to refinance a loan currently at 80% with lender A and taking it to lender B and seeking to go up to 95%. (That 15% i imagine is what you mean by cashout..and yes i want to access that 15%).
My observation is that I shouldnt take it to lender B and ask for 95% if lender B already have another proeprty of mine at 95%. Adding this 2nd loan will take total borrowings > $1mill, so will increase my chances of getting rejected for the 2nd loan at 95%.
One of us is misunderstood. Im trying to refinance a loan currently at 80% with lender A and taking it to lender B and seeking to go up to 95%. (That 15% i imagine is what you mean by cashout..and yes i want to access that 15%).
My observation is that I shouldnt take it to lender B and ask for 95% if lender B already have another proeprty of mine at 95%. Adding this 2nd loan will take total borrowings > $1mill, so will increase my chances of getting rejected for the 2nd loan at 95%.
Hiya
You are right.
Most lenders will not take that aggregate expsoure over a mill at such LVRs
There is a small chance that CBA may look at the deal, BUT if your aggregate with Genworth LMI is already high through other lenders, then this might not work.
Id be chasing a good broker, communicate what u have already in total, and work on going forward from there............at the margins there is too much risk of you getting suggestions that may not fit at all with the minimal info provided.
ta
rolf
You are right.
Most lenders will not take that aggregate expsoure over a mill at such LVRs
There is a small chance that CBA may look at the deal, BUT if your aggregate with Genworth LMI is already high through other lenders, then this might not work.
Id be chasing a good broker, communicate what u have already in total, and work on going forward from there............at the margins there is too much risk of you getting suggestions that may not fit at all with the minimal info provided.
ta
rolf
So to clarify, you're intending to borrow less than $750k against this property, but your total borrowings (across both properties) will be over $1M.
You'll almost certainly need to go to a new lender to get it done at 95%. Keep in mind, most lenders will only allow 90% for doing what you want in a refinance.
You'll almost certainly need to go to a new lender to get it done at 95%. Keep in mind, most lenders will only allow 90% for doing what you want in a refinance.
Hiya
Neither CBA/Colonial nor ANZ truly self insure.
They bth have delegated authorities ................in the case of CBA from Genworth, and in ANZ case from their JV with PMI.
Rules are different between what these guys will do compared tp what the the insurers will do directly. BUT the cumulative exposure still goes against the borrowers acct with the end insurer.
STG for example doesnt work that way........they do swallow the risk themselves.
ta
rolf
Neither CBA/Colonial nor ANZ truly self insure.
They bth have delegated authorities ................in the case of CBA from Genworth, and in ANZ case from their JV with PMI.
Rules are different between what these guys will do compared tp what the the insurers will do directly. BUT the cumulative exposure still goes against the borrowers acct with the end insurer.
STG for example doesnt work that way........they do swallow the risk themselves.
ta
rolf
