All Topics / Finance / Is mortgage insurance transferrable?

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  • Profile photo of Simon_GSimon_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.

    Profile photo of Mick CMick 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
    http://www.shapehomeloans.com.au/
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    Same Banks. Better Rates. Served With a Passion.

    Profile photo of Simon_GSimon_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.

    Profile photo of god_of_moneygod_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

    Profile photo of Richard TaylorRichard 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

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