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Lender's Mortgage Insurance

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Cha | 02 Oct 2012, 09:37 PM Agree 0

We have a loan with Westpac and we paid $5700 as LMI four years ago, when we got the loan. Now we are refinancing with RAMS and we have to pay LMI again. Still the first mortgagee is Westpac. It was indicated that the LMI paid earlier would be deducted from the LMI payable now but now no one is sure of it. Does any one have an idea about the legal position please?
  • Michael Chan | 09 Oct 2012, 08:59 PM Agree 0
    Who was your LMI provider for your intial loan?
    was it Genworth or Westpac internal LMI ( WLMI) ???

    if it was genworth, then yes they will charge you again, even though RAMS is owned by westpac- the lMI provider will still charge you to refinance as the lMI contract originally was written under " Westpac" so technically speaking YES you will need to repay the LMI again.

    If it was under written by WLMI then you have a case to fight for and they will be able to waive/transfer the LMI cost;


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