Lenders Mortgage Insurance

[willy1111]

Hi Guys,

I am hoping someone can shed some light on my question with regards to Lenders Mortgage Insurance.

Lets assume I borrowed 90% for an IP on a standard variable rate, interest only and I did it one year ago.

Obviously I paid LMI as the LVR was 90%.

Now one year on, and I want to switch from a standard variable rate to a 5 year fixed rate with the same lender. I don't want to change the loan amount, just change from variable to fixed.

And the property value has not increased, so the LVR is still 90%.

Would I have to pay LMI again????

PS: The lender is St George.

Cheers

Tim

 

[Rolf Schaefer]

Hi Tim,
no you would not have to pay LMI again if you stay with the same lender.

Even if you re-finance or top-up with the same lender you wouldn't have to pay LMI again (only if you increase your borrowings).