Hi All,
Why would a mortgage insurer only permit a lend of 90% when the finance company has given the ok on a 95% lend?hhhhmmm interesting – maybe he dealt with another finance company than the one that gave you 95% finance. The other reason would be to perhaps back himself/herself up just in case anything went sour over the deal…..interesting question though…..
“If You never never ask, you’ll never never know”
The financier offsets his risk onto the Mgt Insurer, so in the end it’s the Mgt insurer who has to pay out the financier if you default.
Rgds.
Lucifer_auMortgage Insurer is a different entity to the bank. LMI requirements take priority.
You can try another lender who doesn’t use that insurer.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Insurer is a different entity to the bank. LMI requirements take priority.
You can try another lender who doesn’t use that insurer.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Mark,
Just as a bank has rules to guide them when determining either you or your property are a ‘risk’ to their money so does a loan mortgage insurer.
Without knowing the details of the property you are wanting to buy I would suggest that the LMI provider has determined the limit, for this situation, to be 90%.
Someone posted (sorry someone) posted a link to a website that LMI providers use to determine acceptability of risk. Check to see if your locality is one of those consider ‘marginal’
http://www.pmigroup.com.au/LocationWizard.asp
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Mortgager Insurers – the bane of my working life, hate-em-with-a-passion, etc,etc – are carrying the risk. The lender would be happy to lend whatever % wherever, as the MI will carry the can and the $$$$ if/when the borrower defaults or takes off, etc. The MI may have decided the area may be on the decline, the security property might not justify a 95% lend, or as is commonly the case, no reason at all..
If this has happened to you, you could try asking the lender to resubmit to their other MI for reconsideration, (if they use more than 1 MI). Ask the lender who they use, and what is the justification for lowering the LVR.
theloanarranger
Mortgage Insurers are GOD.
They decide how much the will indemnify the bank for. The banks do NOT go over the limit imposed by Mortgage Insurers.
There are only two mortgage insurers in Australia, so there’s not much choice anymore
And once you’ve reached your limit with both (as we did a while ago) you either have to always borrow through low/no-doc or self-insured lenders or wait til the insurers up their loan limits (as they did last year).
Cheers,
Aceyducey
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