Mort Insurance

[Donna L]

Have never used mortgage insurance but do they only give this on particular types of property? I.e. would have difficulty getting 90% on a studio or a warehouse conversion but not on a 3 bedroom townhouse? Also is mortgage insurance given just on the basis of a serviceability ratio or property equity or total assets?

 

[Rolf Latham]

Hi Donna

Mortgage Insurers do NOT want to pay out in the case of loss.

Certain types of securities are generally exluded like, inner city apartmenst, units smaller than 50 sqm , warehouse conversions etc, commercial stock. Locations of the security are also important.

LMI acceptance is not easy if you are advanced in the exposure you already have, but is not impossible to get if you can build a good case, the old bogey of rental reliance may rear its head.

There are too many factors to simplify at the edge, many compunding and seemingly silly things can result in a different decision.

Ta

Rolf