selling and LMI

[sandyfeet]

I understand that if you have a loan at 90% LVR and you have already paid LMI, that, if you were to release equity in the future (assuming growth had occured) that the LMI previously paid will contribute towards the new total for LMI.

What happens when you sell that property and intend on using the gains to fund a new purchase at 90% LVR? Is the LMI at all transferrable?
Im guessing it is'nt?

Regards, Sandyfeet

 

[Peter_Tersteeg]

LMI is not transferable unfortunately. Not between security properties and not between lenders.

I do wish it was the case though.

 

[sandyfeet]

Thought so, thanks Peter

 

[Rolf Latham]

if yo can do a bck to back same day settlement you can often reuse the lmi

in some cases a small time breek between selling and purchasing is allowable with lenders that provide term deposits where they can use them as security to hold the loan open and save on LMI

ta
rolf

 

[Ausprop]

LMI and insurance premium funding - good gigs if you are on the right side of the deal