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Repayment of Mortgage Insurance

Discussion in 'Finance & Banking' started by Ol School Skata, 15th Nov, 2005.

  1. Ol School Skata

    Ol School Skata Well-Known Member

    Joined:
    7th Nov, 2005
    Posts:
    71
    If i purchased a property with only a 10% deposit and paid mortgage insurance, could i receive a refund or part refund of that mortgage insurance if the property increased in value to the point where it could be refinanced back to an 80% LVR loan?

    Eg Bought at $200K, loan $180K (90%) pay MI approx $2000

    Property increased to $225K - can you refinance loan to 80% (loan still 80%) and receive part of my mortgage insurance premium back (approx $2000)

    OSS
     
  2. luckyone

    luckyone Member

    Joined:
    13th Sep, 2005
    Posts:
    6
    Location:
    Canberra, ACT
    We did, by refinancing with another bank. You only will get about 20% - 40% of the money back though, depending on whether you refinance within one or two years. After that you don't seem to get anything back.

    Just ring your mortgage insurer about it to find out the exact amounts. We were with IMB at the time and got 40% of it back for refinancing within a year.
     
  3. Rolf Latham

    Rolf Latham Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    45
    Location:
    Gold Coast and Sydney
    Hiya

    yes 40 % refund is common within 12 mths

    In most instances Id have to ask the qeustion - but why ?

    Most of my clients rub their hands to get their deposit money back and do another deal as follows

    New value = 225, loan topped up to 90 % of new value = 202 500,

    Add the new lmi premium to the loan and there you go. Deposit and costs for another property of around 250 k in QLD , or enough security for a 70 k fully margined mf portfolio.

    ta

    rolf