LMI was waivered

B

brisbane 04

Hi Everyone,
Just recently went to the bank for an investment home loan, I have a 3 investment loans with them and I guess a good relationship with them. They informed me that with my current request for a loan that I would be over 80%. I have never paid LMI and told them so, so they waivered the LMI. I guess if you dont ask you wont receive. Just a heads up to others that banks can waiver the LMI if challenged.:)
 
Hi,
You are both right. I have cross collatarization with all my loans and when I borrow money I borrow enough to pay for the property and stamp duty. I know that some people say cross collatarization is bad but what I have found is that having all my loans with one bank ensures that they look after me as now it is very easy to move to another bank with the recent change in govt legislation. I was even able to negotiate a 0.02 discount on all my loans over and above all the extra discounts I have. Its hard for me to save 20% deposit for each property purchased. I used to be able to do it years ago when I was buying properties for $70000-$80000 but now there range from $250000-$300000.:). I just thought I would post this because I never realised or thought the banks could waiver LMI and it might help others out there.
 
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Sorry for boring you Edmond. I'll try to stick to subjects you're interested in, in this Property Forum ie To find a home for your dog or Where to buy baby stuff.
 
Nah, didnt mean it was a boring thread. I wrote that banks dont care about customers, but i deleted just to avoid silly discussions. Good luck and stop stalking me :p
 
Ahh sorry about that. I agree with you banks dont care and we should all adopt their approach to them. I ask for everything, they can only say no.:D:D. I'm amazed at what lengths they will go to to keep your business. Once when they stuffed up on a loan I let them have it and they delivered flowers and a Tatts ticket to the wife.
 
brisbane 04 said:
Ahh sorry about that. I agree with you banks dont care and we should all adopt their approach to them. I ask for everything, they can only say no.:D:D. I'm amazed at what lengths they will go to to keep your business. Once when they stuffed up on a loan I let them have it and they delivered flowers and a Tatts ticket to the wife.
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Really? What bank? Maybe Bendigo Bank??? Given your location :)
 
Location Bendigo, at the time we were with the Commonwealth Bank and it was the manager that delivered the flowers and chocolates. We are now with NAB where they made us an offer that CBA couldnt match some years ago. We now have all our banking with them for now.
 
Umm....they didn't waive LMI. They just have enough security on your other properties so your overall LVR is below 80% so LMI was not required.
 
brisbane 04 said:
We now have all our banking with them for now.
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for now.

Concentration risk is higher for borrowers than it is for lenders.

Its simply not wise to have all your lending with one lender if you have a multi mill portfolio, and the tragedy is that one doesnt know this until one knows it

ta
rolf
 
I was informed by the Branch Manager and the loans officer in Melbourne that the LMI was waived as I had gone over the 80% threshold. In saying this they are also aware that I have a subdivision project that will soon be having titles on them but they cant do the valuations until titles have been done. Both plots of land have been sold but are subject of course to having titles. My portfolio would be approx 2 million with the one lender what are the risks Rolf?
 
brisbane 04 said:
I was informed by the Branch Manager and the loans officer in Melbourne that the LMI was waived as I had gone over the 80% threshold. In saying this they are also aware that I have a subdivision project that will soon be having titles on them but they cant do the valuations until titles have been done. Both plots of land have been sold but are subject of course to having titles. My portfolio would be approx 2 million with the one lender what are the risks Rolf?
Click to expand...

http://somersoft.com/forums/showpost.php?p=120656&postcount=6


and you can add a few more to this since the post was written a few blue moons ago.

But like all things in life, I have found its not relevant till it becomes personal, so its like annoying "noise"

ta

rolf
 
Hi Aaron funny you should mention Doctor. When filling out the documentation they put me down as a medical practioner in one section and in the next as a nurse manager which I am. Geez I wonder if they didnt look at the 2nd section and thought I was a Dr?
 
Aaron_C said:
LMI is only 'waived' if you are a doctor.
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mortgage insurance is waived for a lot of people and in a lot of situations and could easily have been the case with brisbane 04

his portfolio might have been at say 75% but when borrowing 106% for this purchase it put him to say 83% so they waived it, some extra on the balance sheet of the bank for now, when subdivision done they can revalue and take loan off the balance sheet, good business by the bank in keeping a customer and especially so as they now have him by the balls and he does not even understand they can neuter him him anytime they like
 
Rolf Latham said:
for now.

Concentration risk is higher for borrowers than it is for lenders.

Its simply not wise to have all your lending with one lender if you have a multi mill portfolio, and the tragedy is that one doesnt know this until one knows it

ta
rolf
Click to expand...

Is that because in case the one bank you have borrowed from collapses?
What happens in the event a bank collapses anyway? Let's say bank A goes into liquidation and is bought by bank B. What will happen? Will Bank B call in all loans?
 
Hi Bigtone,
I tend to agree with you in regards to why they waivered the LMI. I have sold the 2 blocks of land which were subdivided we are now waiting for the titles which hopefully will materialise in next 3-4 weeks. Which will enable me to pay off the PPOR and reduce my LVR down to 60%. As for teh bank having me by the balls I'm not sure about that. Congrats to anybody out there who has never used a bank to purchase a property. I have been using banks to purchase properties for the past 20yrs they have done well out of me and me out of them. Its a partnership if I feel I'm getting a raw deal I will move and have done so in the past. So Big Tone how do you structure your investments?
 
If you signed it...congratulations...you have just committed mortgage fraud.

That said...I would be more worried if you are X-collateralised!:p

brisbane 04 said:
Hi Aaron funny you should mention Doctor. When filling out the documentation they put me down as a medical practioner in one section and in the next as a nurse manager which I am. Geez I wonder if they didnt look at the 2nd section and thought I was a Dr?
Click to expand...
 
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