All Topics / Finance / Banks offering no LMI payment

Viewing 18 posts - 1 through 18 (of 18 total)
  • Profile photo of lila77lila77
    Member
    @lila77
    Join Date: 2012
    Post Count: 65

    I have been struggling to obtain finance for an investment property which I bought back in March this year. I have finally given in and applied to borrow more against my PPOR but unfortunately I have to pay a large amount of LMI (compared to the amount I'm actually borrrowing). Citibank were offering no LMI on up to 85% (apparently) but when my loan broker put in my application they said they no longer offered it. Does anyone know of a financial institution that does offer it?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Lila

    Sometimes LMI is just a cost of doing business.

    If you want to take a loan above 80% – LMI is going to be triggered.

    The alternative is saving a larger deposit – but that might take some time.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Depending on the size of the loan you might be better off doing a blended loan.

    Sure higher rate of interest but could be a considerable savings.

    If you don't want to go that route shop around and get your Broker to come back to you with a couple of LMI premium options.

    Did an LMI quote early today for a forum client and saved the nearly $4K from what their own Bank wanted to quote them.

    By there way unless you are in the medical profession there is no lender that is waiving LMI at the moment.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    hmmmm have you crossed the bridge of doing an upfront val to see if you can draw upon more equity from your current PPOR and in turn hit 80% for the new borrowing and avoid LMI?

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Sorry to clarify on the above question – I meant upfront val with other lenders.

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of lila77lila77
    Member
    @lila77
    Join Date: 2012
    Post Count: 65

    Thanks, the val that the current lender did in about $50,000 above equiv sales in the area so i don't think other vals will come in as much more. Btw I work in the medical profession and still can't get LMI waived only doctors can.

    Profile photo of god_of_moneygod_of_money
    Participant
    @god_of_money
    Join Date: 2008
    Post Count: 970
    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Please get your broker to do an ANZ val – they often provide system vals and I am seeing a lot of those vals come back very high. 

    What is your actual profession/occupation?

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    lila77 wrote:
    Thanks, the val that the current lender did in about $50,000 above equiv sales in the area so i don't think other vals will come in as much more. Btw I work in the medical profession and still can't get LMI waived only doctors can.

    There's quite a few medical professions that are considered.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of god_of_moneygod_of_money
    Participant
    @god_of_money
    Join Date: 2008
    Post Count: 970

    Investec Bank…they waived the LMI for medical profession

    Profile photo of traceyimbtraceyimb
    Participant
    @traceyimb
    Join Date: 2003
    Post Count: 82

    Hi Lila, Is the loan secured to both properties?  If you split the loan and don't cross-collateralise then your mortgage insurance premium will be lower. The lower the loan amount the lower the premium. 

    Profile photo of lila77lila77
    Member
    @lila77
    Join Date: 2012
    Post Count: 65

    No none of my properties are cross collaterised. I am a medical scientist.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Where is the property you are looking to purchase.

    There are a couple of lenders who will waive the LMI on a purchase but a couple of them are location specific.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of lila77lila77
    Member
    @lila77
    Join Date: 2012
    Post Count: 65

    I’m just looking to refinance my current PPOR to pay off the final amount on another property that settled back in March (I’m not looking at borrowing more against this IP as its considered higher risk). The properties in Adelaide.

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    your only option is to do the ANZ upfront val – could come back as a modeled estimate and could come back high. 

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Shahin is onto something. I've had a lot of deals work purely because of the ANZ upfront val system. This does work however generally on the premise that the property is of below median stock or has other outlying issues to make vals come in low.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of lila77lila77
    Member
    @lila77
    Join Date: 2012
    Post Count: 65

    But I've just had it revalued in March. Would there be a difference now? What if it came back lower than that val?

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271

    Re-valued by who? By ANZ? ANZ often runs modeled vals rather than kerbside or full vals (depends on a few things). No harm in getting one done – could have an answer in 5 minutes!

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
    Email Me | Phone Me

    Residential and Commercial Brokerage

Viewing 18 posts - 1 through 18 (of 18 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.