Low deposit premium on top of LMI??

[fbc10]

Hi all,
I am currently dealing with the CBA and requesting a drawing of 16k on top of my original 303k loan. My initial LVR was 89% and now is down to 85% (16k increase on loan 40k increase on property value). The CBA however are telling me that I am required to pay a $250-300 low deposit premium if this transaction proceeds. When I asked why I couldnt get a straight answer out of this broker. Could someone please explain if this really correct, and if i need to pay an additional premium even though I havent exceeded my initial LVR?

Many thanks,

 

[Rolf Latham]

Hiya

At least a couple of likley

1. Premium rates have increased
2. The total exposure has increased, even though the lvr hasnt

ta
rolf

 

[fbc10]

Thanks for your response.

Whats meant by total exposure?

My Loan will increase from 303 to 319 although value has increase from 336 to 375.

 

[Rolf Latham]

Hi

Even though the LVR is lower, the actual $ amount is higher

what was thew previous LDP fee amount pls ? If the base loan was below 300 and the LDP was added to it, then this new loan may be at a higher peg level as well.

0 to 300 k per lvr bracket is one rate

300 to 500/600 per lvr bracket is a very different rate


ta

rolf

 

[fbc10]

I see,

My initial loan was $299k with a $2931 LDP and $600 establihment fee

 

[Rolf Latham]

Makes sense I suppose.

odd that your existing broker couldnt let you know that aint rocket science for a broker, but very confusing for a borrower

t
rolf

 

[fbc10]

Thanks for your help Rolf.

Pretty much had it with cba..

 

[Rolf Latham]

Pretty much had it with cba..

understand that, but no commercial point in moving

ta
rolf

 

[Spectre]

if it wasnt the original broker he wouldnt know what the premiums were unless he had that info to start with.

300 to get 16k isnt a lot. Opportunity can cost a lot more & theres worst lenders than cba

as rolf referenced to - if you go to refinance and you dont have 20% equity on it then you'll likely have to pay lmi on the whole amount again with another lender.