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Hi All,
If I paid LMI on a 90% LVR borrowing, but the property increased in value by 10% (and thus at 80% LVR now) within a year, would the bank/mortgage insurers refund all or part of the LMI to me?
Thank you
Unfortunately they wont.
If you revalue and withdraw more equity, your already paid LMI will be credited - meaning you'll only pay the difference if you push your LVR back up.
For info, you can find Genworths (the main insurer) policy on refunds here. Your scenario sits on the bottom of pg 44. (http://www.genworth.com.au/docs/und...licy-(australia)-lmiupa0414.pdf?Status=Master).
I tried that and got hit with "The LMI you have already paid for doesn't cover New Money Borrowings"
Chomp
I tried that and got hit with "The LMI you have already paid for doesn't cover New Money Borrowings"
Chomp
Hi All,
If I paid LMI on a 90% LVR borrowing, but the property increased in value by 10% (and thus at 80% LVR now) within a year, would the bank/mortgage insurers refund all or part of the LMI to me?
Thank you
I tried that and got hit with "The LMI you have already paid for doesn't cover New Money Borrowings"
Chomp
If your increase is going to the same lender than the LMI already paid will definitely form a portion of the new premium.
What if the increase is going to a different lender but that lender uses the same mortgage insurer as the prior lender?
I did a subdivision, sold the rear block and then extended the loc as much as I could after reducing the mortgage on the front house and that is what they told me. I went a bit mental and they pushed it through but some people might have just put up with it.
Chomp
What if the increase is going to a different lender but that lender uses the same mortgage insurer as the prior lender?
No chance.
The government got rid of early repayment fees in 2011 to make moving lenders easier and gave themselves a pat on the back for it. They were told to investigate making mortgage portable but it's never gone anywhere. There is a lot that goes on behind the scenes with LMI it it would be almost impossible to pull off even if the government and banks were interested.
Unfortunately they wont.
If you revalue and withdraw more equity, your already paid LMI will be credited - meaning you'll only pay the difference if you push your LVR back up.
For info, you can find Genworths (the main insurer) policy on refunds here. Your scenario sits on the bottom of pg 44. (http://www.genworth.com.au/docs/und...licy-(australia)-lmiupa0414.pdf?Status=Master).