LMI - getting nervous...

We are not due to settle on our IP until feb/march next year. As it is settlement on completion we are unable to actully organise a loan until it gets closer to settlement. I am keeping a close eye on my servicability as a result of this, as I don't want to be caught out.

What has me nervous at the moment though, is that although the banks themselves don't have a problem lending to us - the LMI'ers have tightened up on what they will service. :eek: Currently, Due to this, I would have to provide 20% deposit plus purchasing costs to avoid lenders mortgage insurance (15% plus cost is likely, but I am not sure if I can manage the full 20% plus costs), or do some fancy financial footwork to secure better servicability with the LMI'ers (but which would not neccessarily be in my best interests past getting the loan through).

Now I still have 6 months for things to change and to figure out solutions to this new dilemna I am faced with. Does anyone have a crystal ball and can tell me how things may be with the LMI'ers in six months time?? ;)

But I am wondering how many other people out there are being stuffed around by these changes in policy for LMI.
Hiya Rug

That is a risk with OTP style work.

Some lenders will do an OTP loan for you, and run the approval for 6 to 12 mths.....doesnt provide huge comfort, but its worth something.