Just wondering if someone can advise if I refinanced my current loan to 95% of its current value to draw down the equity in it, if I have already paid LMI when I initially took out the loan, do I pay LMI again on the total loan amount or LMI just on the additional funds which were refinanced?
Thanks in advance.Joseph12Member@joseph12Join Date: 2008Post Count: 57
If you refinance to a new lender you have to pay LMI on the total loan amount again.
If you increase your existing loan with your current lender you pay the LMI just on the increase amount.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
If you were to increase your existing loan to 95% you would generally only be charged LMI on the extra portion.v8ghiaMember@v8ghiaJoin Date: 2005Post Count: 871
As posted, just the extra portion of borowings only if you stay wiith the same lender – which is a terrific reason to do so! . Some lenders are 'cagey' for 'cash out' on anything over 90% LVR as a sidepoint.Finance GuruMember@finance-guruJoin Date: 2008Post Count: 9
I do want to add that even if you stay with the same lender, you may be charged LMI again if you upstamp 3 years after the loan originally settled. Different lenders sometimes have different policies on this, so do check you particular lender, or you may come up with an unexpected bill at settlement.
Im still tossing up ideas at the moment but will keep all the above comments in mind.