Browse Forums Home Finance 1 Jan 16, 2021 7:12 am Hi All We brought a block of land and then got a builder onboard and so we have a split mortgage as we settled on the block first. From the sale of our last home we were able to apply the full 20% deposit to the land portion so no LMI was payable. Once we got the builder on board and did the tender - the bank did a valuation and it came in at the cost of build/land. The question is - when the build is finished - roughly 6 months from the loan commencing - if there were a valuation done at the time that showed the value is in fact over the amount we originally paid - is there anything we can do about the LMI that we paid? We have added a bunch of variations to the build that we are paying for separately as well as the high end upgrades through the original tender. Also - houses selling nearby with the same bedrooms/bathrooms are far exceeding what we paid - sometimes 100-200k more for something with less space. All of this was communicated to the bank and the assessor - however the LVR came in at 84% so we were charges 20k in LMI. Just wondering if there is any way we can get that back as we are expecting the valuation to come in higher and I don't see why we should be paying LMI on a 30 yr loan when the % is actually lower than 80%? Re: Can you get LMI back? 2Jan 16, 2021 7:21 am So....if you refinance, close that loan, within 12 months there was a policy that you could ask for a portion of the LMI back with certain lenders. But it’s rarely done & I have never seen it in 20 years. I can’t recall off the top of my head which lenders have this available. Flip side, take those comparable sales you have - make sure they are true comparables, ie: similar land size, same number of bedrooms/bathrooms/car spaces, settled sales in the suburb within the last 3 months & give them to the lender & get the valuation challenged. Also make sure you’ve ticked every box on your build, driveway, fencing, landscaping, window and floor coverings - these quotes/contracts go to valuer too. Failing that, get a broker to order a valuation with another lender. If it still comes in at 85%ish, LMI at this range isn’t too harsh, depending on your loan amount it might be only $5k - I mean, we prefer none but you’re in & sometimes we have to be grateful for the tool. Happy building! Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Can you get LMI back? 3Jan 16, 2021 7:30 am Thank you for the reply! Yes - I gave them the comparable sale as it literally sold two weeks before at Auction across the road for over 120k more than our build! I also told them about curtains and landscaping but they wouldn't accept those (or just ignored me). I also offered to show the appliance discounts our builder gets - for example - the RRP on the appliances was $35k - but he got them for $18k and passed those savings to us. They already charged us the 17k and added it to the loan - and we felt we had to sign as the builder was being pushy and we are only in a short term rental (as we sold our house) Not sure if there is any way to challenge it now - was hoping to challenge once the house was up and get a new valuation in... Re: Can you get LMI back? 4Jan 16, 2021 7:39 am $17k!!! This must be a very high value loan? Have you settled the loan yet? If not - get a broker to look elsewhere quickly. Rebecca Jarrett-Dalton Property crazy expert mortgage broker, love building new homes! Two Red Shoes mortgage broker http://www.tworedshoes.com.au/building Re: Can you get LMI back? 5Jan 16, 2021 7:48 am Yes its quite a high amount! Unfortunately its already settled - so that's why I am wondering if there is any recourse once we finalise the build and can show that the initial valuation might not have been a true reflection of the total value. Seems a bit unfair to have to pay that much money for 6 months of a 30 year term when we immediately fall under the 80%. Re: Can you get LMI back? 7Apr 06, 2021 5:04 pm ![]() Yes its quite a high amount! Unfortunately its already settled - so that's why I am wondering if there is any recourse once we finalise the build and can show that the initial valuation might not have been a true reflection of the total value. Seems a bit unfair to have to pay that much money for 6 months of a 30 year term when we immediately fall under the 80%. who is the LMI through? Genworth do a refund as below, If you can get a refund then you should do a refinance if you know 100% your LVR will be below 80%, and you could even source a cashback of up to $8k from some of the majors so could be in your interest to look into it more. https://www.genworth.com.au/lenders/pol ... d-refunds/ Re: Can you get LMI back? 8Apr 07, 2021 8:42 am ![]() ![]() Yes its quite a high amount! Unfortunately its already settled - so that's why I am wondering if there is any recourse once we finalise the build and can show that the initial valuation might not have been a true reflection of the total value. Seems a bit unfair to have to pay that much money for 6 months of a 30 year term when we immediately fall under the 80%. who is the LMI through? Genworth do a refund as below, If you can get a refund then you should do a refinance if you know 100% your LVR will be below 80%, and you could even source a cashback of up to $8k from some of the majors so could be in your interest to look into it more. https://www.genworth.com.au/lenders/pol ... d-refunds/ I cannot find who the bank use as their LMI company however it does have a part in the contract that says they may provide a partial refund of the loan is finalised within two years ... The 'may' is bolded and underlined. We have already been told by the builder that the value of our place will have sky Rocketted since we started building due to the current market. We are only 2 months from completion so we will be getting a valuation as soon as it's finished and see where we are at. That 16k ... Even if we only get 8-10k back is a huge amount of money for us. That pays for the blinds or the solar so we will definitely be chasing this up. I've just had a look at the website. 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