If you are borrowing in excess of 80% LVR there are a few institutions that are offering free LMI up to certain amounts.
Ask your institution if they can assist.
Ask your institution if they can assist.
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- Thread starter SCMC Mortgage
- Start date
Welcome to the forum David!
This is the product limited to a certain LMI amount? from memory about the $4k mark or so? How exactly does that work? The client only has the LMI waived if they have an LMI premium under that amount, and therefore only up to a certain LVR depending on loan tiers? If the LMI is any higher thwy have to pay the full amount? Who is paying the LMI?
This is the product limited to a certain LMI amount? from memory about the $4k mark or so? How exactly does that work? The client only has the LMI waived if they have an LMI premium under that amount, and therefore only up to a certain LVR depending on loan tiers? If the LMI is any higher thwy have to pay the full amount? Who is paying the LMI?
Might be ammortised into the first five years (or so) of the loan or similar and a cost borne by the lender to draw in customers.
There may also be heavier break fees if the borrower leaves the product in the first five years (or similar period)......can you elaborate DW.
I doubt the lender will lose out one way or another.
The only free cheese is in the mousetrap
yes you are both basically correct.
If the borrower discharges from the loan within the first 5 years then the premium which was paid by the lender is clawed back. Buyer beware if you are planing on discharging within the first 5 years but a fantastic deal if you are in the loan for the long term.
If the borrower discharges from the loan within the first 5 years then the premium which was paid by the lender is clawed back. Buyer beware if you are planing on discharging within the first 5 years but a fantastic deal if you are in the loan for the long term.
Does that equate to still needing 10-14% deposit?
I am with Westpac and they used to offer 85% LVR without LMI.
Sounded great to us, so we used them, then we discovered that our breaking fee within the first 4 years, on a variable loan was $700 plus all the normal fees.
AND during the first 4 years, they said they would not compete with any competitors interest rates.
So I'm stuck with them for a few more years
Sounded great to us, so we used them, then we discovered that our breaking fee within the first 4 years, on a variable loan was $700 plus all the normal fees.
AND during the first 4 years, they said they would not compete with any competitors interest rates.
So I'm stuck with them for a few more years
Hi Mike
To be fair to WBC the $ 700 DEF would be payable on any loan with WBC ............and is in the lower amount that alost all lenders charge.
At least through the broker channel at the time we could get the discount to 70 pts most times.
ta
rolf
To be fair to WBC the $ 700 DEF would be payable on any loan with WBC ............and is in the lower amount that alost all lenders charge.
At least through the broker channel at the time we could get the discount to 70 pts most times.
ta
rolf
