Can a Lenders Mortgage Insurer, prevent you from refinancing to a new loan, if the LVR is 80% or less?
More specifically, I have a property that hasn't been revalued in about 5 years. I know from recent attempts to sell, and based upon what someone was willing to go to contract for, its worth about $100K more. If I refinance now, based on the new valuation, the LVR would be 80% or slightly less.
When I queried this with my bank, Adelaide Bank, who I'm currently in considerable arguments with for refusing to put anything in writing and saying one thing one day and denying it the next, they advised that because my original loan had LMI, the LMI has to 'approve' the refinance??
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Anyone able to advise on that one?
Matt.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
As long as the lender doesnt insure every loan irrespective of the lvr (some lenders insure < 80% but they pay the LMI premium) then the mortgage insurer will not need to sight your new application sub 80%.
Yours in Finance
Richard Taylor | Australia's leading private lender
I was told that Genworth would not approve the refinance so therefore Adelaide Bank would not proceed with my application.Marty McDonaldParticipant@marty-mcdonaldJoin Date: 2010Post Count: 64Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Are you sure the loan is directly thru Adelaide Bank not a mortgage manger who is using Adelaide Bank funding as if so that could be the case.
Otherwise i think they are having you on.
Yours in Finance
Richard Taylor | Australia's leading private lenderMarty McDonaldParticipant@marty-mcdonaldJoin Date: 2010Post Count: 64
Marty – correct it wasn't a low doc originally.
Richard, I did use a broker many years ago but am now dealing directly with Adelaide Bank.kimandglenMember@kimandglenJoin Date: 2009Post Count: 26
Why don't you go to another lender if you are having hassles with Adelaide Bank? Sounds suss if you are going direct through Adelaide Bank and is a full doc loan.
I'd love to refinance away, but like I say, Genworth are saying no and therefore I can't
I think I trip to the Ombudsman or Channel 9 is nextcubman09Participant@cubman09Join Date: 2009Post Count: 37
What a complete load of crap Adelaide Bank are spinning. If anything if you have not been with Adelaide Bank that long you can possibly seek a refund as the LVR is now <80% on Full Doc (PAYG) loan.
I would look to refinance straight away as the loan is provided by Adelaide Bank, however as Genworth provide the Lenders Mortgage Insurance (LMI) to Adelaide Bank they have nothing to do with the loan.
The suggestion would be to seek alternative finance and lodge a discharge request and if they continue i would liase with the Credit Ombudsman.
Hope this helps