LMI refund within 2 years!

[agent007]

I read in the Money magazine that LMI can be refund if mortgage is repaid in full within 2 years. This is great news!. Was wondering if someone of you have done it and what was your experience?

Thanks,

James.

 

[sbe]

Do a search on LMI. There was a thread recently on it.

 

[geoffw]

Originally posted by sbe
Do a search on LMI. There was a thread recently on it.

The trouble with searching for "LMI" is that searches must be on a minumum of four letters.

Though I seem to remember that the discussions on refund of LMI were for a refund after 12 months if the borrowings dropped below the 80% limit, rather than 2 years for a full payout of the mortgage as James mentioned.

 

[Rolf Latham]

hIYA

Generally 12 months AND the actual loan needs to be refinanced for the policy to no longer apply.

Ta

rolf

 

[Peter Noake]

I tried this recently with the NAB, but was told that about 6-12 months ago the mortgage insurers have changed thair policy and no longer allow for the refunds. Main reason was due to the very strong property market which was leading to a very large increase in applications for refunds. It was obviously costing the mortgage insurers too much so they decided they didn't want to play ball any more.

for Rolf - do you have any evidence of any banks allowing for the refunds recently??

Pete

 

[Rolf Latham]

Hi Pete

YES

Providing the loan is refinanced.

NABs comment is funny. A premium is a premium is a premium, so what if the market moves along faster than expected and actually eliminates the insurers risk.

Once the loan is refinanced to 80 % LVR then the policy no longer covers the lender.

Ta

rolf