Our offer on a property has been declined by the bank's 3rd party insurance company, the reason being it is a Serviced Apartment and LMI cannot be considered. The reason the bank has gone for the 3rd party insurance company is because our total borrowings has gone over $1M. Our intention of buying this property is to live in not to rent out. Even though the apartment is in a letting pool, we can rent the apartment ourself if we decide to move out. Can anyone please advice why they would decline our loan because it is a serviced apartment? If I can get a letter from the building management to say we can rent it ourself if we decide to move out, will the 3rd party insurance company consider this? We will not have time to go with another bank, as we have already extended finance and settlement by 1 week. Any input will be much appreciated...