Refund-Lenders Mortgage Insurance

A couple of months ago, a thread was created concerning the refund of Lenders Mortgage Insurance.

I've tried in vain to find the thread...with no luck...so....

I have managed to reduce the Loan to value ratio to under 80% for a property purchased a couple of months ago (by renovating). Originally, I took out LMI with the ANZ Bank (borrowing 95%). After some renovations, the bank revalued the Investment Property to under the 80% threshold and hence I sought a refund. However, the Mortgage Insurer will not refund the Mortgage Insurance (they normally refund 40% if under 13 months of first taking out the loan). The reason is that they will only refund if the loan has been fully re-paid. Has any body else out there managed to get a refund via the ANZ Mortgage Insureres wihtout having to resort to selling or re-financing the property?

GlennM.
 
HI GM

Moved your post to the finance area.

ANZ have recently brought out THAT policy. Understand its actually PMI that provides the LMI, not ANZ themselves.

The issue is that if you have paid down the loan and the redraw is still open then the loan is actually not at 80 % of orginal val.

Very little you can do there except go to the banking ombudsman.


Ta

Rolf
 
Hi Glenn,
I'm sorry to hear of your troubles with ANZ.
On the issue of LMI refunds ... after many weeks of phone calls and emails, I finally got an LMI refund of approximately one third the original premium paid.
I paid out my loan and refinanced with a different lender after nine months. That was 18 months ago!!!
The greedy Lenders Mortgage Insurers would not have paid the refund voluntarily - you must harrass them for it.
If you sell your car, for instance - your car insurer will send you a refund cheque for the unused portion of your insurance.
Why is it acceptable for the LMI companies to keep your unused LMI premium?
If not for this fabulous forum, I would not have known that I could apply for a refund ... Thanks everyone!
Regards,
Crystal
 
I too was able to get a refund of a portion
of my LMI. If I remember correctly I paid
almost $2000 in premium when I took out
the loan, 8 months later I refinanced in
order to buy a PPOR as well and I rang
my previous lender (Members Equity) who
refunded me around $750 within 2 weeks.

Still it wasn't voluntary, if I hadn't of asked
I wouldn't have got so be sure to ask for
what you want folks.

andy
 
I also posted this in a separate post but....
We refinanced our previous PPOR and borrowed for our first IP 11 months ago. We paid LMI. We have sold that PPOR and moved into that IP which is now our PPOR. Can I get a refund on a portion of that? If so how do I do it?
 
You should contact your lender and ask for
it. If they aren't helpful you may want to
mention the BIO.

andy
 
Glenn had said A couple of months ago, a thread was created concerning the refund of Lenders Mortgage Insurance.
I've tried in vain to find the thread...with no luck...so....


Now, I haven't tried to find it - but the guts of the thread (as I recall) said that if the lmi premium was more than 12 months old, it wasn't worth doing.... At 11 months, Nuppy, you might get "something" back - but you're close to the wind - don't delay.

And, if BIO is confusing (another TLA.... three letter acronym) - think Banking Industry Ombudsman

Regards,
 
Rang the bank today and faxed in all the loan offers. They are pursuing it. Thanks guys, did well, played strong, found me some $$$
 
Guys

Are you saying you can only get a LMI refund if you sell or refinance?

I bought an IP a while back (less than 6 months).Have whacked in a new kitchen/basic renos which will have increased the original LVR of 0.85 to roughly 0.8

Should I be pursuing this (I don't want to have to refinance yet though)

Cheers

Sam
 
I tried that and the bank just said "NO". I didn't
wield the BIO stick with them then when I
probably should have.

Hopefully someone else will post with a contradictory
story that it can be done.

andy
 
I had similar run in with ANZ. Took out LMI on IP purchase and 8 mths later used the same property as security to purchase another taking combined LV ratio to 80% after 1st was revalued. I tried to get a refund as the bank had revalued the original IP 32% above the initial value but they said I couldn't use the valuation as its use was for the 2nd IP only. I took it up with the BIO and they said I would be hitting a brick wall and to hard to fight. I wasn't in a position to refinance so just had to accept it - I will be wiser next time (threaten refinance).
Regards Bushy
 
Our mortgage carrier is not applying the payments

Our mortgage company is not applying our payments and has sent us to collections. We have documentation to show all payments were made on time and in excess of the amount due. Our mortgage carrier is not applying the payments. Our bank has records to prove payment has been sent and cashed. Our mortgage company has now sent it to collections. Who can we contact for help?
 
benqmark

This is an Australian property forum - I doubt that there would be anyone here who could help you with that sort of information. Good luck in solving your problem.

Cheers
LynnH
 
HI Benqman

Although you came to the wrong country for help perhaps you can check whether there is some sort of banking ombudsman that can help you.

Good Luck!
 
Lmi

Thought I'd resurrect this thread....
Is it still the case one can apply for a partial refund on LMI? I'm in the process of refinancing an IP or two.
 
i posted something a few weeks ago re our BankSA loans.....we had 3 seperate loans each of which were about 6months old (life of loan) but we weren't entitled to a cent back because apparently there is no LMI refund offered on LoDoc loans through BankSA.
 
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