Hi all,
Just a quick question. Is it possible to reclaim a portion of the LMI paid if the property is sold within a year. I purchased my property in November last year as a longterm PPOR and was (sort of) happy to pay the insurance to do that. But things have changed recently and I look to be settling at the end of July. Can I get any of the money back and if so how?
Thanks in advance.
MB
I managed to reclaim a portion of the LMI on my PPOR when I refinanced about a year into the mortgage. I found most of my information by googling. Off the top of my head, the amount you get is relative to the timeframe the mortgage is paid out – I think it must be within 2 years to get anything back though. The way I went about it (and this was painful) was to ring the lender (who was Aussie Home Loans) who pointed me to the people who actually financed the Loan (I don't remember who that was), who then pointed me in the direction of the people that provided the insurance (GE Money). After speaking to what seemed like a dozen people within GE in order to find the right department, I finally had a point of contact (make sure you get the name and number fo the useful person or you have to go the full circle everytime you want to contact them…). Once I knew who to speak to, it was quite easy. I just provided the loan number and my details, and I had a cheque arrive in the mail in about two weeks. Sorry the details are vague, but the answer to your question is yes you can get some of it back! Of course the process may vary with different lenders and Insurers. Hope this helps!
It does thankyou! I didn't really want to waste my time if it wasn't possible so I will have a shot at it now. Anyone know anything about ANZ?
I can't help you out with ANZ but I have had several investment properties with Genworth as the LMI. They have refunded a portion of the insurance every time I have sold within 2 years without me having to ask. I just get a cheque in the mail.
With Genworth, if you sell within 12 months you get 40% of your LMI back and within 1 – 2 years, you get 20% back.
Speak to ANZ directly. They should sort it out for you without you having to do all the ringing around.
Good luck
K
As at June 2008 Anz policy was to refund a maximum of 40% of the LMI premium in the event that the loan was repaid in full 12 months after inception and on the basis that no new loan was taken out.
There are a few provisos and the process will take around 6-8 weeks.
Your original Mortgage Broker should be able to file the claim on your behalf.
Richard Taylor | Australia's leading private lender
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