97 LVR with in house LMI ?

Good evening,

I am a first home buyer and am wondering if the brokers could please let me know, are there any lenders that will allow a 97% lend that have their own LMI or own delegated LMI authority, without the file having to go for separate assessment with an LMI company ?

Many thanks I really appreciate it.

 

Why would you want to? I thought I risked things at 95%...

 

Hmmm.... so you're after a low/no doc loan.... they attract a premium to compensate for risk & still require satisfactory valuation.

LMI is insurance for the lender over risk posed by the lendee (the borrower)... why would they waive it or take higher risks without some form of compensation?

Please don't take this the wrong way. Borrowing money is a business relationship not a right, hence a realistic perspective is necessary. IMO, such a high LVR warrants a certain amount of real risk reduction by the lender.... proper LMI.

 

No. It would be a full doc loan with stable credit history.

Last time i tried to buy a property, the credit union sent my file to Genworth to be assessed as they couldnt do it themselves. Genworth was totally fine with my application, however ummed and ahhed because the house was in a flood zone and failed to insure it. The finance fell through.

Are there any lenders that will allow 97% lvr including the LMI capitalisation? Which can be approved for LMI in house???

Many thanks

 

ANZ, but only if you have a credit facility with them for 6 months. Having in house lmi helps marginally, but the credit team still look harder at deals over 80%. You may well have had similar problems with in house lmi with a flood prone property.
As Rolf said, if it was the property that genworth didn't like last time, they still like you. Use the same pre approval for the next house?

 

Are you buying within the same location again?

The old 97% incl of LMI isn't as widely available as it used to be. Especially if you required a lender with a DUA

Others you could try (but you'll need LMI sign off) are Bankwest and Liberty. Ask them about the location prior to submitting an app.

Cheers

Jamie

 

Thanks a lot Jamie
Does bankwest have ability for DUA up to 97% with LMI?
What about ING or westpac?

 

Also sorry, does LaTrobe financial have own in house LMI ??

 

And be careful with your credit enquiries. For fhb at high LVR it's an important factor. If you previously had a pre approval, if wait until you found the purchase before submitting another application, or use the original pre approval.

 

Thanks Rolf
What about liberty financial?

 

Many thanks.
Does any broker here know if Westpac will allow a 95 LVR lend for PPOR without LMI for medical professional ?
Or is it back down to 90?

 

Liberty go 95+uncapped LMI i believe (add it all on). Westpac MEDICO for standard resi is 90%.

 

Bankwest use QBE for all LMI deals, Westpac use another providor other than QBE and Genworth. ING cant remember as dont use them much but wouldnt have DUA. Most lenders that have DUA still need sign of for 90%+ deals.

Its 90%.

Correct. BOQ, Auswide and Bank Australia will do 95% + full cap on OO purchases as well as the lenders already mentioned above.

In regards to concerns with LMI providors, in your case sounds like it was the property they had an issue with and not you as an individual.

 

Thanks Colin.
So BOQ for a full LMI cap would go above 97% LVR if need be?

 

It was irritating because the valuer said the value was all good, and then the file went to genworth for approval. The house was near a harbour and genworth wanted a 100 year flood report which i could not provide.

I spent $1000 on the holding deposit, $800 on a survey and $2500 in legals for the legal work in preparing and reviewing the contracts.

It all fell over because the LMI provider genworth wanted a report i could not provide and which the local council did not have either.

So I am thus wary of LMI providers as i lost a couple of thousand dollars in this process.

 

Correct. Have done one as high as 99.8%.

 

Thanks Colin. With my savings for 5% is it acceptable for it to be cumulative savings over 3 months? Or the whole 5% have to be in the account for 3 months?
Can you do work australia wide?

 

It can be cumulitive and yes I have clients Auswide and some even overseas whom I have never met in person. With technology and good communication its no issue at all.