Mortgage Insurer Criteria

[Kevray]

I have 2 properties one with 2 houses on (950 sqm's zoned R50) & another with one house on (1543 sqm's zoned R30). I am currently with Commonwealth Bank (Lowdoc with borr's over 1 mill) & increasing my LVR from 60% to 80% in order to place the released equity with another bank for another property. The Mortgage Insurer Genworth after 2 weeks has rejected my application saying my properties are "unacceptable securities"
At the recommendation of my Mortgage Broker we approached the ANZ who indicated that they wouldnt have a problem with my security but their Mortgage Insurer PMI have come back 2 weeks later saying that they would only lend up to 70% on my first property after they had reduced the Valuation by $180,000 to cover any costs that they may incur in separating the houses.
My broker has now suggested Westpac, does anyone have any ideas?

 

[Rolf Latham]

Hiya Kev

Anything more than a mill will be hard to place with the major because WBC, PMI, Genworth and STG wont like more than 1 mill.

Are both properties crossed or on the one title ?

ta
rolf

 

[Kevray]

Mortgage Insurance

Yes both are crossed

 

[Qlds007]

The old Big C X Collateral issue.

Firstly your MB should have known about Anz and their issue with 2 titles on 1block (it is is in all of their loan criteria).

Going to Westpac you will have the same issues with the MI as Rolf has already mentioned.

Why not look at a lender who doesnt mortgage insure upto say 75-80% on lodoc !!

 

[Kevray]

In the case of the ANZ they were prepared to bend their rules but in both cases the respective Mortgage Insurers have their own criteria which is different to the bank. I find it incredible that both these banks arent aware of their own MI's criteria & have wasted my time filling out application forms etc & possibly an investment opportunity.

 

[Qlds007]

I find it incredible that both these banks arent aware of their own MI's criteria & have wasted my time filling out application forms etc & possibly an investment opportunity.

Im not !!!

 

[Peter_Tersteeg]

In the case of the ANZ they were prepared to bend their rules but in both cases the respective Mortgage Insurers have their own criteria which is different to the bank. I find it incredible that both these banks arent aware of their own MI's criteria & have wasted my time filling out application forms etc & possibly an investment opportunity.

This is no surprise at all. You wouldn't believe the amount of times I've told a client a policy from a bank, the help desk then tells them something else (criticising the broker as they do it) and then it turns out the help desk was in error.

I've also encountered loan officers in branches who have no clues about their own policies, especially when it comes to investment loans or trusts. Most bank employees know even less about investment.

 

[Les]

There's a lesson in here !!

Great question, and great responses !! There's a major lesson in here

Regards,