LMI Refund?

[piNoob]

Hi,

was reading investment magazine yesterday and there was some advices about mortgages.

Basically is said that if you have paid LMI and now have less than 80% to pay on your mortgage, talk to your bank as you might be up for a refund.

Does anyone know anything about this?

In our case we are still with the same bank (ANZ) and have around 40% left to pay on our PPOR, I wonder can we qualify for a refund? (yes we did pay LMI).

Thanks for any info.

 

[buzzlightyear]

Its only relevant if you are re-financing within 12 months of when you originally took out the loan.

 

[landlubber]

Yep - Ask for your refund !!

Hi piNoob,
Yep.. that's the way I understand it works. Whilst LMI is a "once only" payment ( and most people probably "kiss" the cash good-bye)....I understand it is actually insurance for the full term (e.g. 20 years) of your loan ... so if either (a) your property increases in value or (b) you pay down the principle , either way, such that your LVR is now less than 80%, you can get a refund of the balance of the LMI. My daughter did exactly this with CBA. I'm not totally sure if all lenders operate this way, but certainly CBA does.

...pretty pathetic how the banks/lenders don't seem to promote this fact ..isn't it ??
LL

 

[piNoob]

thanks guys, I think it won't hurt if I just call my bank and simply ask for a refund if possible

 

[Rolf Latham]

Hi Noob

DONT do that just yet

What are you looking to achieve long term ?

If for eg you want to draw equity from that property in the future over 80 % youd need to pay new LMI for the lot, even though you may have only got max 40 % of the original premium back ..................there are other issues that may have

Sometimes, the immediate few bucks look tempting............

An u will find ANZ will make u refi AWAY from them to get the refund as well.


ta
rolf