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Can't get LMI for loan on high density property purchasesmain_1@hotmail.com [1 Posts] I have found a property i wish to make an offer on but have not proceeded as Bankwest cannot get LMI for the Loan. My broker has advised that the mortgage insurer has reached their limit of exposure in the apartment block. I could go with another bank who uses a different mortgage insurer but this would come at a the cost of higher interest rates. My broker has now advised that i look at low density apartments only to avoid being rejected LMI I have 10-15% deposit... do i have any other options? Thanks! Qlds007 [4196 Posts]  Your Broker is correct the Bank and the MI will have a max number of units in any 1 block they will insure. Guess question would be why are you looking at going through Bank West whilst their special offer appears attractive on the surface from my experience you will have issues down the track. Some of the other lenders have an auto approval policy when it comes to LMI which avoid this issue. Would need to know more about what you are after to comment further. Cheers Yours in Finance   Qlds007 [4196 Posts] Your Broker is correct the Bank and the MI will have a max number of units in any 1 block they will insure. Guess question would be why are you looking at going through Bank West whilst their special offer appears attractive on the surface from my experience you will have issues down the track. Some of the other lenders have an auto approval policy when it comes to LMI which avoid this issue. Would need to know more about what you are after to comment further. Cheers Yours in Finance Shaun M Smith [18 Posts]  To mind BankWest utilises the services of PMI for mortgage insurance purposes. The other major mortgage insurer in the industry is Genworth. The majority of lenders use one or both of these. Outside of this both St George Bank and Westpac both self-insure. I am surprised your broker is unable to offer a solution. Regards Shaun Smith | Managing Director | CDS Financial Services MortgagePlus [33 Posts] Richard and Shaun are right. Your broker should have been able to offer you a couple of different options. If you would like to find out more, just email me and I will be happy to provide you with an idea on how to solve your issue. Tim O'Shea Qlds007 [4196 Posts] Smain Cheers Yours in Finance Lady Luck [9 Posts] Hi Smain, Personally i love bankwest, but if you cant go through the banks try Widebay they have no problem with high density loans. Good Luck gibbo1 [68 Posts] Was speaking to a ANZ BDM the other day and they said they now self insure and then have a blanket cover for any "major incidents" Qlds007 [4196 Posts] Anz have self insured through PMI for as long as i have been in Oz. Cheers Yours in Finance MortgagePlus [33 Posts] Not to split hairs with you Richard, but if ANZ insure through PMI, thats not 'Self Insuring'. If ANZ insure through ANZ, that is self insuring. Tim O'Shea Qlds007 [4196 Posts] Tim You are right we wont split hairs as I am not aware of any lender that has a Risk Fee which is 50% cheaper than the equivalent LMI premium. . Cheers Yours in Finance MortgagePlus [33 Posts] LOAN AMOUNT $499K RISK FEE MORTGAGE INSURANCE Saving 85% Regulated $399 $4,958 92% ING Banks Self Insure, with the above risk fee applicable. Not a bad saving. The results vary, but it is cheaper to go no LMI if you meet the policy. And now you know.
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