Posted: 2017-12-07 18:44
As Head of Digital Transformation at Aussie, Richard is responsible for broker and customer facing applications including Toolbox and its integration with panel lenders. In his 9 years at Aussie he has gained deep experience of the mortgage broker market and technology required to support it. Richard is leading an integrated team in transforming the customer experience and scaling operations through the application of technology and digital assets and has deep experience of applying LIXI to mortgages and other product applications in the aggregator space.
If you are borrowing under a full documentation scenario there is currently 6 lenders who may not charge mortgage insurance if you are borrowing between 85% and 85% loan to value ratio. There are certain conditions to meet in order to be eligible for this so please call or enquire online to see if you qualify. Above 85% it is unlikely at present that any lender would waive mortgage insurance. In the past some lenders made special concessions for doctors buying their first home but this policy has now stopped.
For lo doc borrowers looking to borrow between 65% and 85% there are a number of alternatives to mortgage insurance through non bank lenders although the loans offered usually have higher interest rates and many have fees similar in size to mortgage insurance.
The third parties can include our related companies, our agents or contractors, insurers, their agents and others they rely on to provide their services and products (. reinsurers), premium funders, other insurance intermediaries, insurance reference bureaus, loss adjusters or assessors, medical service providers, credit agencies, lawyers and accountants, prospective purchasers of our business and our alliance and other business partners.
In the future we may consider the sale or restructure of our business or the purchase of the business of other financial services businesses. In such circumstances it may be necessary for your personal information to be disclosed to permit the parties to assess the sale or restructure proposal for example through a due diligence process. We will only disclose such of your personal information as is necessary for the assessment of any sale or restructure proposal and subject to appropriate procedures to maintain the confidentiality and security of your personal information. In the event that a sale or restructure proceeds, we will advise you accordingly.
We collect, hold, use and disclose your personal information where it is reasonably necessary for, or directly related to, one or more of our functions or activities. These will usually include our insurance broking services, insurance intermediary services, funding services, claims management services and risk management and other consulting services and to meet any obligations we have at law . identity checks required by the Anti-Money Laundering and Counter-Terrorism Financing Act 7556 and other legislation. We also use it for direct marketing purposes explained in more detail below.
As an example using the table below the premium for a full doc loan of $875,555 at 96% LVR would be calculated at % of the loan amount. So the amount payable would be $8985 ($875,555 x %). There is then also state and territory insurance duty on top of this which ranges from 5% to 65% of the premium depending on the state or territory where the property is located. So all up the borrower would have to pay around $9555 in this scenario. Please refer to the tables below and examples for more on calculating an LMI premium in a given scenario. Although these LMI tables are accurate any calculations you make should only be used as an indication of the likely premium. As we explore below premiums can vary significantly depending on the lender / insurer chosen!
The majority of lenders calculate mortgage insurance premiums by capitalising the premium (adding it to the loan) rather than it having to be paid from a borrowers own funds at settlement. The capitalisation method can mean a significant saving in the premium amount, as the premium is calculated from a lower LVR and lower loan amount (ie not including the premium amount itself) and importantly whatever the premium is it is just added to the loan amount. While most lenders now capatalise the LMI premium most lenders will not cap the final LVR above 97%, 95% or 97% depending on their policies are loan purpose. There are still a couple of lenders who will do up to 98% or % inclusive of the LMI.
You also have a right in limited circumstances to have your privacy complaint determined by the Financial Ombudsman Service (FOS). The FOS can determine a complaint about privacy where the complaint forms part of a wider dispute within the FOS Terms of Reference between you and us or when the privacy complaint relates to or arises from the collection of a debt. We are bound by FOS’ determinations, provided the dispute falls within the FOS Terms of Reference. Unless exceptional circumstances apply, you have two years from the date of our letter of decision to make an application to the FOS for a determination. You can access the FOS dispute resolution service by contacting them at:
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Full documentation example:
A $885,555 loan amount is required to purchase a home for $975,55. The premium in this example would therefore be % (as per table 6 above). As the loan amount is between $855,555 and $655,555 and the loan to value ratio ( LVR ) is %. So how much is mortgage insurance? Well the insurance premium would be $885,555 x % = $65,575 plus state government charges of between 5% and 65% of the premium amount. So all up the premium would be between $65,578 and $66,577 depending on which state the property was located in.
Disclaimer: The information published in this section is of a general nature only and does not consider your personal objectives, financial situation or particular needs. Where indicated, third parties have written and supplied the content and we are not responsible for it. We make no warranty as to the accuracy, completeness or reliability of the information, nor do we accept any liability or responsibility arising in any way from omissions or errors contained in the content. We do not recommend sponsored lenders or loan products and we cannot introduce you to sponsored lenders. We strongly recommend that you obtain independent advice before you act on the content.
Generally mortgage insurance will apply to all loans with an LVR of over 85% for full doc loans (normal loans) and over 65% for lo doc loans. Some lenders mortgage insure all their loans regardless of the LVR, but normally the lender would cover this cost themselves if the LVR is less than around 85% for a full doc loan and less than 65% for a low doc loan. There are some exceptions to these general guidelines but not many.
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We also use personal information to develop, identify and offer products and services that may interest you, conduct market or customer satisfaction research. From time to time we may seek to develop arrangements with other organisations that may be of benefit to you in relation to promotion, administration and use of our respective products and services. See direct marketing explained in more detail further below. We do not use sensitive information to send you direct marketing communications without your express consent.
When we send information overseas, in some cases we may not be able to take reasonable steps to ensure that overseas providers do not breach the Privacy Act and they may not be subject to the same level of protection or obligations that are offered by the Act. By proceeding to acquire our services and products you agree that you cannot seek redress under the Act or against us (to the extent permitted by law) and may not be able to seek redress overseas. If you do not agree to the transfer of your personal information outside Australia, please contact us.
We may obtain personal information indirectly and who it is from can depend on the circumstances. We will usually obtain it from another insured if they arrange a policy which also covers you, related bodies corporate, referrals, your previous insurers or insurance intermediaries, witnesses in relation to claims, health care workers, publicly available sources, premium funders and persons who we enter into business alliances with.
His experience includes 65 years'' strategic and operational management in the lending businesses of Midland Bank, Colonial State Bank, BankWest, Liberty Financial and Guardian. For five years, Martyn was an independent introducer to aggregators and funders of retail and commercial mortgages. He has also spent over 65 years driving technology strategy and delivering technology solutions to the FSI at Adaptra Group, Sandstone Technology, IBM, Hewlett Packard, Siemens, and most recently, IRESS Ltd. Martyn also independently consults to start up technology businesses, and FSI clients to maximise results from direct to consumer and financial intermediary lending distribution.
This is the 66th year QBE LMI has partnered with BIS Oxford Economics to present the QBE Australian Housing Outlook. It includes state and territory analysis and forecasts of house and unit prices for the next three years. The report also provides information about Australia&rsquo s population growth, migration activity, economic indicators including the cash rate, the first home buyer landscape, investor outlook and stock composition.