What happens with LMI when I apply for a LOC?

[THEHEATH]

Could anybody shed some light on what happens with LMI when you set up a LOC on an existing loan. Do I pay a pro-rata (if that's the right term) amount of LMI on the new amount of credit for the LOC, or do they re-assess it on the whole amount (as it assesed as being a new loan or something like that?)and I have to pay the whole lot again?. Cheers guys.

 

[Rolf Latham]

Hiya

Usually you only pay LMI on the new money.

So if the total LMI premium due is 3000 say and you have already paid 2600, then you only need to pay 400

ta
rolf

 

[THEHEATH]

Excellent, thank you