Is mortgage insurance transferrable?

Viewing 5 posts - 1 through 5 (of 5 total)

Simon_G
Member
@simon_g
Join Date: 2005
Post Count: 56
April 4, 2011 - 8:37 am
Just a quick question…
I took out a 95% loan just under 2 years ago on a property and obviously paid mortgage insurance. Now, for a variety or reasons I want to change lenders. My LVR is currently around 86%.
If the lender requires mortgate insurance for 86% can I transfer the original one or would I have to repay (obviously a smaller premium).
Thanks,
Simon.
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
April 4, 2011 - 10:16 am
Yes and no….If it’s with the same LMI provider and your LVR is dropping ( risk level is lower) and you have good payment history and CR file. then a request can be made to transfer the LMI amount over…
Most of the time LMI are not transferable because most ppl ask for a higher LVR ( increase risk) or they have some sort of default on payments/ CR file or go with a lender who uses a different LMI provider.
I would note: at 85% LVR NO LMI Is payable with a few banks these days, reduce LMI at 95%.
Can i ask why are you refinancing? better rates? cash out?
Regards
Michael
Mick C | Shape Home Loans
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Simon_G
Member
@simon_g
Join Date: 2005
Post Count: 56
April 5, 2011 - 9:00 am
Thanks Michael,
We are refinancing for two reasons. One, being better rates. Second, ongoing disputes with the bank….
Simon.
god_of_money
Participant
@god_of_money
Join Date: 2008
Post Count: 970
April 5, 2011 - 9:13 am
Has anyone refinance because of cash out?
Normally it is only cash neutral by NAB up to 1k
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
April 5, 2011 - 9:42 am
Both are good reasons to switch lenders.
As Michael has indicated 85% waiver of LMI is possible whilst some lenders have an alternative to LMI which can prove cheaper.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender