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!
Just try the lender that written their own LMI.
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.
Richard Taylor | Australia's leading private lender
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.
Richard Taylor | Australia's leading private lender
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
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.
Smain
Thanks for your email, glad we could have been of assistance.Richard Taylor | Australia's leading private lender
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
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"
Anz have self insured through PMI for as long as i have been in Oz.
Richard Taylor | Australia's leading private lender
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.
In an instance where funders 'Self Insure', they will generally charge a Risk Fee as a substitute for an LMI premium. Risk Fee is usually 30-50% cheaper than LMI.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.
.
Richard Taylor | Australia's leading private lender
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.
Ahoy Qlds007
in this thread you mentioned…
"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."
that sent a bit of a shiver up me spine, as i have loan with Bankwest… can you please expand on the ….'issues down the track bit"…with much thanks
SilverSurfer
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