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Lenders mortgage insurance

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Mick | 07 Nov 2012, 10:14 PM Agree 0
Hi anyone, have just purchased a home and have had all manner of things crop up. But the latest today(final settlement), I was informed by my solicitor 3 hours before settlement that the financer for our loan forgot to add the 'lenders mortgage insurance' to our final figure and another $3800 bank cheque was needed. While it states it on the 'formal approval' letter, in the fees and charges section of the actual 'loan contract schedule' states;
FEE ITEM- "The premium for lenders mortgage insurance".
AMOUNT- "Nil".
Am unsure if it means I wasn't meant to be charged that fee or not, what is more legally binding , the formal approval or the contract.
  • Daniel | 14 Nov 2012, 11:19 AM Agree 0
    It depends on how much you borrow. If you borrow no more than 80% of the house value you bought, you shouldn't pay any Mortgage Insurance.
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