Hi people,
I have just recently taken out the “First Option Home Loan” package with Westpac. This is my first loan & due to my own major stupidity I have received a loan with features which really do not suit my needs. After many discussions with the Bank I have decided the going to another lender is the better option as they are unable to match the offer the other lender is offering.
Originally on this loan with Westpac I had to get Lenders Mortgage Insurance. When I move across to the other lender I will have more than a 20 percent deposit ready. Given the fact I have only had this loan with Westpac for under 1 Month, what percentage of a refund of the Mortgage Insurance that Westpac currently uses would I be able to get?
I have been trying extremely hard to find this information out through Westpac for the last 2 days. So far I have gotten mixed responses of
A: I will be entitled to a full refund of the mortgage insurance considering it is less than 12 Months into the loan
B: I will be entitled to no refund
& last but not lest
C: I will be entitled to only 40 percent of a refundCan anybody out there who may know please advice?
It honestly amazes me that this is not made clear when getting the loan through Westpac. There is absolutely no mention of anything like this in all the paperwork they provide you with. & the fact that noone can seem to give a definitive answer is even more frustrating.Regards,
Brett
Hi Brett,
I must admit I do not know the answer to your question. I had heard the 40% figure around the traps but this was not from a broker/banker so I would not bank the house on this return either.
For me it seems you have made a business decision to move banks and therefore any LMI refund you get could be considered a bonus. If you want a more definitive answer I recommend you write a letter to the person/bank/broker who set the loan up initially and get a written response from them.
Check with your lender about any costs that may be associated with refinancing a loan within such a short time frame. You will need to read the fine print here.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Yes, I am not sure either. The mortgage insurance companies have different policies and then the banks have different, and changing polies, on top of that.
But I have heard the figure 40% if the loan is discharged within 6 months.
Terryw
Discover Home Loans
Parramatta
[email protected]
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Brett
I have checked with the Bank.
Their answer is that not only must the loan be repaid in full and loan account closed and cancelled, mortgage must be discharged as well. All this within the first 12 months of policy being written, there is no pro-rata. Premium refund is 40%.
Please also note that First Option Home Loan has an exit fee of $150.Regards,
John Rathgen[email protected]
Ph 0410 697 540
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