ANZ Announces Partial LMI Refunds – Could you Qualify?
Last month we were interested to learn that ANZ announced they will commence paying partial LMI (Lenders Mortgage Insurance) refunds on policies that are terminated in the first two years. LMI is payable by the mortgage applicant to protect the lender should the borrower not meet the loan repayment obligation for loans that are above 80% of the value of the total security being offered.
Could you potentially benefit from this policy change?
To qualify for an LMI refund the following requirements must be satisfied:
- The policy was issued on or after 1 October 2017
- The loan is repaid in full (not partially discharged or refinanced internally with ANZ)
- The policy is fully terminated
- The policy is not subject to any claim at the time the loan is paid in full
- Any security given in relation to the repaid loan does not continue to secure any other loan I the borrowers name.
- If the borrower is entitled to a refund the amount refunded will be:
- 50% of the premium they have paid if the loan was repaid within 12 months form the date the policy commenced
- 25% of the premium they paid, if the loan was fully repaid within 24 months form the date the policy commenced.
This is a handy snippet to have up our sleeve should anyone’s scenario fall in line with this new offering. The Blackburne Mortgage Broking team will be able offer more information should you feel this may be applicable to you and aid in securing the refund if you qualify. Or if you have any other queries relating to either Lenders Mortgage Insurance or any other home loan related matters, contact us any time.