Hi,
I bought my first property in January, and although initially tenanted, I have moved in to satisfy FHOG criteria.
When I purchased the property, I paid $11k in LMI.
I had heard that if I was able to add value (reno), and get in revalued within the first year, and hence reduce LVR, I could get some of the LMI that I had paid back?
Is this correct?
n.b Property bought for $420k @ 100% finance. Revalue after reno will be $460k (similar local sales).
HELP!
Ian
Ian
Will depend on the lender and whether you refinance or not.
If it was a risk fee and not LMI then nothing you an do.
Richard Taylor | Australia's leading private lender
Hi Ian,
From what i know if you refinance within 12 months and go through the same mortgage insurer then you are entitled to a portion of your LMI back (The percentage you get back goes down with time) I havent heard of anyone doing it just because a new val indicated a higher value, but since you are at 11months, ask your lender, if that doesnt work contact the insurer direct and ask.
Good Luck.
Hi Richard,
$420k loan, of which $400k is a 3 year fixed. $20k is b.variable.
Loan thru AMP, and it was LMI and not a fee.Interest rate is currently far too good to refinance (7.75). I thought by creating a buffer (equity) of around $40k, which would reduce my LVR to around 90%, might put me into a lower risk category, and hence no need for all the LMI fee.
The initial reason for my thread was to see whether it was worth fast tracking the reno's (next 2 months) so the valuation was completed within the first year.
Thanks for your help.
Rowester – regretfully a simple answer ….. No it wont help you.
Richard Taylor | Australia's leading private lender
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