We are currently in the process of refinancing our ppor loan to access some equity. After the valuation has been done the new lvr is 75%. We paid LMI on the original loan because the lvr was above 80%.Does anyone know if we are entitled to a refund of part of the LMI?.
FostonLife is a series of new beginnings
It certainly is possible depending on the time frame. You need to contact your broker or banker and get the ball rolling ASAP.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I don’t like your chances Foston.
I had a client who, a year ago, paid nearly
$ 17 K in mortgage insurance in order to get his loan.Because few (if any) full financial borrowers would be prepared to take up a loan if they had to pay such a hefty premium the insurer has since decided to lower the premium for that particular type of loan to about $ 2 K.
When the time came for him to ask for a refinance
as he wanted some more money the property had considerably increased in value so I expected him to get a refund as the new LVR would be much lower.Not on however. I was told that the insurer would only possibly make a refund if the property had been sold.
Pisces
Pisces,
I had a client who very recently got a refund. It is quite possible depending on how much time has elapsed. Banks will go slow and individual staff members might not even know it is possible – mentioning the ombudsman seems to help sometimes.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks, Simon, I will suggest that to him.
Pisces
Actually I just realised that he got a refund as he sold up. It is theoretically possible to do so on a reval but not quite as straightforward.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
[cool4] Direct quote from GE – LMI underwriting guidelines:
We should be advised by the lender as soon as the loan has been fully repaid so that we can cancel the loan from our system and calculate any refund due. We require your lender’s reference number, GEMIS LMI reference number, borrower’s name and the date of the final payment. See below for current refund rate table, which is subject to change from time to time.
Period of insurance 1 yr or less, refund payable 40%
Period of insurance over 1 year to 2 yrs, refund payable 20%
No refund is payable where:
§ The loan is repaid within one year of the maturity date of the mortgage; or
§ The amount payable is less than $150; or
§ A loss has eventuated; or
§ The loan has been reported to have had recent arrears;
§ The lender does not notify GEMIS within 3 months of the loan being fully repaid.My question is, how come they have a refund of 40% if the period of insurance is 1 yr or less, however they also state that no refund is payable if the loan is repaid within one year of the maturity date of the mortgage? [blink]
Liz
Mortgage Lender
Wouldn’t that cover off loans with a short term of 1 to 2 years? Ie. maturity date is normally 30 years away so it wouldn’t affect most loans.
Cheers
Stu
Thanks Stu,
Silly me I thought it meant the loans 1 year from date of inception.
Not many 1 or 2 year loans out there I imagine.
Liz
Mortgage Lender
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