Applying for a home loan can be a time-consuming and often unpredictable process. This rings especially true when you have to borrow more than 80% of the home’s value. In that scenario, you’ll have to purchase Lenders Mortgage Insurance (LMI.)
However, most future homeowners don’t realise that they could be eligible for a partial LMI refund if they repay their mortgage in the first two years. Lenders should notify their customers about this, but they often fail to do so. Fortunately, Get My Refund is here to help.
What Does Lenders Mortgage Insurance Do?
In short – it protects the lender. Therefore, you don’t have to arrange LMI yourself. The lender will do that for you. It also shouldn’t be confused with Mortgage Protection Insurance, which covers the borrowers if they can’t pay mortgage payments due to unanticipated circumstances.
The good side of the LMI is that you can buy your dream home even with a small deposit. If you qualify for homeownership in every other regard but struggle to come up with the standard 20% deposit, LMI helps.
But that means having to pay a one-off fee during the loan settlement. This fee is calculated by the lender and paid by the consumer.
How Do You get an LMI Refund?
Lenders Mortgage Insurance is classified as a non-refundable fee in the process of applying for a home loan. However, there are special circumstances where you might be eligible to get a partial refund.
As the lender designs each LMI policy to fit the individual borrower, eligibility will vary. The easiest way to find out whether you are entitled to an LMI refund is to contact Get My Refund directly and let us investigate for you.
Can Lender Mortgage Insurance Be Waived?
Borrowers with less than 20% of the deposit will have to pay the Lender Mortgage Insurance fee. However, there are a few exemptions. For customers in specific professions, LMI can be waived up to 90%.
If you’re a doctor, dentist, veterinarian, or optometrist, you might be able to apply for a home loan with a smaller deposit. The same applies to lawyers, solicitors, and barristers. However, every case is assessed on an individual basis.
Can Lender Mortgage Insurance Be Transferred?
Unfortunately, LMI can’t be transferred to other financial institutions. If you want to refinance your loan with another lender, you will likely have to pay LMI again if you don’t meet their minimum deposit requirements.
The same applies if you’re looking to buy your next home and don’t have enough equity in an existing property.
Claim LMI Refund With Get My Refund Now
Many clients aren’t aware that they’ve paid the LMI fee. Even if they are, they might not know they’re eligible for a partial refund.
This lack of transparency leads to clients paying more than they should. We’re here to fix that! Get My Refund will analyse your information thoroughly and submit a claim for you.
You don’t need to do anything at all. We’ll deal with the details and unforeseen obstacles and do our best to get you paid.