Hi there i was wondering if anyone can help me, i recently just paid back a loan that I had on a block of land which was an investment. I owned the block for about 2 yrs and just sold it and the loan has been paid back and settlement has taken place. Today i got a letter from the bank that I had the loan from and its to do with morgage insurance, Im not sure what it means so if i explain the letter i was hoping someone could shed some light on it for me.
The title of the letter is "Notice of right to cancel morgaged property insurance"
The law says that you must be told, now that your credit contract has been terminated that you can also:
– Terminate your insurance contract over morgaged property financed under credit contract and
– Recover from the insurer a proportionate rebate paid under the insurance contract.
According to our records your insurer is '" N/A"
Then it just says the address of the block of land that i had.Does this mean that i can get back some of the money i paid at the start of the loan for morgage insurance? Sorry if this sounds like a stupid question but the block was the first piece of real estate i bought and i havnt really done this before.
Thanks in advance
PaulHi Paul
Not so common these days but yes you maybe entitled to a refund of the mortgage insurance paid.
It will vary from lender to lender and usually the maximum refund would be 40% of the initial amount paid.
Quick call to the Bank and they can tell you what you can expect to get back.
Richard Taylor | Australia's leading private lender
Paul,
Like Richard said, a quick call to the bank will alwasy help. However, if you had the property for more than two years, neither of the Two MAIN mortgage insurers (PMI and Genworth) will provide any rebate. The refund applies only within the first two years.
Best of Luck.
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