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  • Profile photo of Matt007Matt007
    Member
    @matt007
    Join Date: 2008
    Post Count: 259

    Ok,
    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??

    <Moderator: delete language>

    Anyone able to advise on that one?

    Thanks,
    Matt.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Hi Matt

    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%.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Matt007Matt007
    Member
    @matt007
    Join Date: 2008
    Post Count: 259

    Thanks Richard
    I was told that Genworth would not approve the refinance so therefore Adelaide Bank would not proceed with my application.

    Profile photo of Marty McDonaldMarty McDonald
    Participant
    @marty-mcdonald
    Join Date: 2010
    Post Count: 64

    Hi,

    Yes sounds off to me… as has gone up in value I am assuming it was not a low doc originally?

    Why are you refinancing is it to get equity / cash out? The purpose of the loan may be the issue..

    Cheers,

    Marty McDonald | Mortgage Experts
    http://mortgageexpertsonline.com.au/
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    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    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.
     
    Cheers

    Yours in Finance 

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Marty McDonaldMarty McDonald
    Participant
    @marty-mcdonald
    Join Date: 2010
    Post Count: 64

    as has gone up in value I am assuming it was not a low doc originally?

    Meant to say as has gone up in value but LVR is still around 80% then wasnt a low doc originally ?

    Marty McDonald | Mortgage Experts
    http://mortgageexpertsonline.com.au/
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    Profile photo of Matt007Matt007
    Member
    @matt007
    Join Date: 2008
    Post Count: 259

    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.

    Profile photo of kimandglenkimandglen
    Member
    @kimandglen
    Join Date: 2009
    Post 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.

    Profile photo of Matt007Matt007
    Member
    @matt007
    Join Date: 2008
    Post Count: 259

    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 next

    Profile photo of cubman09cubman09
    Participant
    @cubman09
    Join Date: 2009
    Post Count: 37

    Hi Matt,

    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

    Cubman
    "Lending enthusiast"

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