From: Tibor Bode
I'd like to ask some people about their knowledge, opinion, fact about no refund on mortgage insurance. I had this email exchange with my broker and I think somehow that this is not right. I had asked him based on recent sales to organise a revaluation and a corresponding refund on the MLI premium as the property prices I have recently purchased and renovated have risen so several properties are under 80%.His response is below. I do not try to vindicate him, I just want to understand whether I am entitled or not for a refund.
Any advice would be greatly appreciated.
Tibor
"Firstly even if the new valuation suggests that the property has in fact increased in value, does not qualify for the mortgage insurance to be refunded. This premium was paid at the time of when the loan was drawn down and the risk was measured and paid for at that moment in time. Neither the
increased value of the property nor the amount of loan you have paid off will qualify for a refund. The LMI has obviously taken into account that the property bought will increase in value over time, otherwise the premiums would have been a lot higher if they that the risk was going to be greater.
So in saying this, the additional equity may be able to be used to purchase additional properties without using your own funds, but this is a vast uncertainty."
I'd like to ask some people about their knowledge, opinion, fact about no refund on mortgage insurance. I had this email exchange with my broker and I think somehow that this is not right. I had asked him based on recent sales to organise a revaluation and a corresponding refund on the MLI premium as the property prices I have recently purchased and renovated have risen so several properties are under 80%.His response is below. I do not try to vindicate him, I just want to understand whether I am entitled or not for a refund.
Any advice would be greatly appreciated.
Tibor
"Firstly even if the new valuation suggests that the property has in fact increased in value, does not qualify for the mortgage insurance to be refunded. This premium was paid at the time of when the loan was drawn down and the risk was measured and paid for at that moment in time. Neither the
increased value of the property nor the amount of loan you have paid off will qualify for a refund. The LMI has obviously taken into account that the property bought will increase in value over time, otherwise the premiums would have been a lot higher if they that the risk was going to be greater.
So in saying this, the additional equity may be able to be used to purchase additional properties without using your own funds, but this is a vast uncertainty."
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