Risk Fee

[WASP]

What the heck

We received a Line Of Credit approval letter

Loan Number 1 - Line of Credit (Value Advantage Package) - $38,742 . This includes the Capitalised RAMS Risk Fee

In addition to any other fees and charges deducted from the loan amount at settlement, a RAMS Risk Fee of $3,741.70 will be deducted. The loan amount includes this fee.

 

[Jamie M]

It's their version of LMI I think.

Cheers

Jamie

 

[tobe]

Indeed it is. Sounds like the LMI top up.

 

[jonmardell]

What the heck

We received a Line Of Credit approval letter

Loan Number 1 - Line of Credit (Value Advantage Package) - $38,742 . This includes the Capitalised RAMS Risk Fee

In addition to any other fees and charges deducted from the loan amount at settlement, a RAMS Risk Fee of $3,741.70 will be deducted. The loan amount includes this fee.

it looks like you applied for an extra 35K in a line of credit and the risk fee/ mortgage insurance has been added on. Were you aware of this? the valuation may have come in lower than expected if you were not expecting it to be this much.

 

[Colin Rice]

Bank speak for in house LMI.

 

[redwing]

Geez

Even if you don't draw down on it?

We've not ever had this with WBC

 

[Rolf Latham]

Geez

Even if you don't draw down on it?

We've not ever had this with WBC

um yeah

an unused loc will have LMI applied if the loan needs to be insured, even long before we get our hands on it

so for lodoc > 60 and for mere mortals with > 80

ta
rolf

 

[Aaron_C]

Risk fee is a euphemism for LMI. Usually used by the non conforming lenders when they lend people 80% LVRs with bad credit history etc.

 

[redwing]

um yeah

an unused loc will have LMI applied if the loan needs to be insured, even long before we get our hands on it

so for lodoc > 60 and for mere mortals with > 80

ta
rolf

Hi Rolf

It's been a while, I should look back

Is the % above by WASP the norm?