[Not sure if others have reported this yet but there are massive changes to the LVR's and also maximum amounts for at least 1 major LMI provider. This has affected Westpac due to their Insurer and I presume it will affect other banks also.
In a nutshell, the LMI provider has tightened up on where they will insure and recategorised properties and reduced maximum amounts covered. Properties in many regional and country areas will now not get any LMI cover.
Perhaps one of the brokers here can elaborate but my understanding is;
Brisbane/Melbourne - Maximum amount covered $450K, LVR ok up to probably 90%+.
Adelaide/Darwin/Hobart - Max covered $350K, LVR ok to 90%+
Sydney - Max covered $500K - LVR ok to 90%+
THE HUGE CHANGE
Many mining towns and regional towns are NO LONGER COVERED by this insurer. This is big as it means a property I could have bought recently on 10% deposit (+'vely geared), will now require 30% deposit.
The regional towns and country areas that are still covered by the LMI provider have also had the amounts covered reduced massively.
Properties are categorised as something like cat1 (Capital city metro), cat2 (regional), cat3 (country towns) etc etc. Places I thought may be covered such as Mount Isa are now categorised as HIGH RISK or single industry towns. These apear to be no longer insured and banks will likely require 30% deposit.
Surely this will affect many regional and mining towns in a very negative way as sales volumes are likely to drop due buyers not being able to get the leverage they may need to buy.
Anyone else got some more or different info on this topic???.
In a nutshell, the LMI provider has tightened up on where they will insure and recategorised properties and reduced maximum amounts covered. Properties in many regional and country areas will now not get any LMI cover.
Perhaps one of the brokers here can elaborate but my understanding is;
Brisbane/Melbourne - Maximum amount covered $450K, LVR ok up to probably 90%+.
Adelaide/Darwin/Hobart - Max covered $350K, LVR ok to 90%+
Sydney - Max covered $500K - LVR ok to 90%+
THE HUGE CHANGE
Many mining towns and regional towns are NO LONGER COVERED by this insurer. This is big as it means a property I could have bought recently on 10% deposit (+'vely geared), will now require 30% deposit.
The regional towns and country areas that are still covered by the LMI provider have also had the amounts covered reduced massively.
Properties are categorised as something like cat1 (Capital city metro), cat2 (regional), cat3 (country towns) etc etc. Places I thought may be covered such as Mount Isa are now categorised as HIGH RISK or single industry towns. These apear to be no longer insured and banks will likely require 30% deposit.
Surely this will affect many regional and mining towns in a very negative way as sales volumes are likely to drop due buyers not being able to get the leverage they may need to buy.
Anyone else got some more or different info on this topic???.
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