Mortgage Insurance advice please !!

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From: Anonymous


Could any one in the know, please tell me
if the big 4 banks self insure then selves with regard to mortgage insurance or do they just use the same 4- 5 insurers that most of the other smaller finance providers use?

Reason I ask is, the mort/ins are starting to give me a hard time because of too many properties in the one area, even though I am only borrowing at 80% LVR. I am looking to try the bigger banks to try to get around this situation.

Any advice please ?

John
 
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Reply: 1
From: Michael G


Hi,

If you LVR is 80% it isn't mortgage insurance that is causing your problem, its the perceived risk of the bank with lending a volume on $ to one person in one area (too many eggs in one basket problem).

This problem also occurs when there are too many mortgages from the one lender in one area. This can even occur when they have too many debts in the one development.

That is one reason why your loan may not be approved if you buy off the plan, it could be that they already have as much debt in that development as they can handle. In that case it would have nothing to do with your income, debts, deposit, or deal.

Ask your lender if that's the case, it may be as simple as going to another lender for your next few loans.

Michael G.
 
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Reply: 1.1
From: Rolf Latham


Yep MG

I would say that is John's problem, since LMI wont touch loans much over 500 in aggregate anyway. Sometimes banks just dont tell their clients the truth. Also Likely that he is not buying a metro area, perhaps in a regional centre ?

Yes try a diff lender (s)

Ta

Rolf
 
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Reply: 2
From: Emil Ajepoor


Hi,

If you are having trouble obtaining finance please drop us a line on the following email,

emmy.associates@bigpond.com

we maybe able to help you in many ways than one.

I also agree with the other posts that it is not the Mortgage insurance that are giving you a hard time, but rather the banks. If you are borrowing from the same institution for all your property's, they perceive you as risky.

Regards
Emil Ajepoor
 
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Reply: 2.1
From: David Nolan


Quick note: If you are borrowing from a lender who securitises mortgages then ALL loans are subject to Mortgage Loan Insurance from dollar one. You only have to pay the premium if the LVR is over 80%.

Try alternative lenders.
Good Luck
David
 
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