Browse Forums Home Finance 1 Jan 20, 2012 2:58 pm Hey Guys, We have been conditionally approved by our lender to build our house but rejected by LMI for servicability as they will not consider an allowance i get while working away from home. We dont have enough money to tip into our land loan to reduce it enough to escape LMI, and are now unsure of what to do. Has anyone had this before or has anyone got any suggestions?? Thanks in advance. Re: Bank Conditionally Approved Loan But LMI Rejection 3Jan 20, 2012 3:45 pm That was through a broker. Re: Bank Conditionally Approved Loan But LMI Rejection 5Jan 20, 2012 3:58 pm Bankwest, so i think they use QBE?? Re: Bank Conditionally Approved Loan But LMI Rejection 6Jan 20, 2012 4:35 pm What is your LVR? Are you close to 80% or up the other end of the scale? If you are close to 80% then sometimes the finance company can waive MI if you have a strong case. If you are borrowing more like 95% then you may be pretty well stuck. LMI companies have the final say - and they do not like allowances. Some factors may strengthen it - like have you received the allowance for 2+ years and it is shown on group certificates? Is it written into your employment contract as a guaranteed? If these are yes answers then sometimes the LMI company will move on their decision. Some things are worth waiting for. Re: Bank Conditionally Approved Loan But LMI Rejection 7Jan 20, 2012 5:05 pm Kyton, We are around at 87%. The valuation cam in lower than expected as we should have been around the 83% mark. I have been recieving the allowance for just on 3 years now and Bankwest will accept it which is why i dont understand why the LMI wont. I have got the allowance written into my contract and it is definately shown on my payslips Re: Bank Conditionally Approved Loan But LMI Rejection 8Jan 21, 2012 12:26 am Is the allowance received on a regular basis? Or ad hoc? If you can show that you've received it regualarly over the past three years and "working away from home" is not subject to change and is a regular part of your job, then maybe that's all they need to accept it as being part of your regular income. Otherwise, try somewhere else.... Maybe a different broker too? Re: Bank Conditionally Approved Loan But LMI Rejection 9Jan 25, 2012 2:46 pm Hi, firstly the two major LMi companies in Aus is QBE and Genworth- having said that they are NOT the only two lenders use...in fact some leners ( around 9 of them ) have their own LMI department- such as ANZ, St george etc... On 87% LVR, you got plenty of chooses ... 1. Go with a lender that has an in-house DUI up to 90% LVR...meaning if the lender approves the loan the LMI have to approve it as well as part of their contract. And many lenders will be happy to accept allowances ( as long as you had the allowance income for the last 2 years) 2. Go with a Internal LMI company- Lenders that offer their own approval and LMI decisions 3. Get broker to organize an upfront valuation to see if the valuation is higher with another banks = less LMI cost - better still NO LMI! important to get the val upfront, to avoid multiple credit hits. Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au brokers will also be in a position to get you a better rate than the advertised rate most times. 6 7566 How much are you ahead in payments compared to where the build is at? Have you fully drawn down the loan? 5 11915 The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19096 |