Repayment of Mortgage Insurance

If i purchased a property with only a 10% deposit and paid mortgage insurance, could i receive a refund or part refund of that mortgage insurance if the property increased in value to the point where it could be refinanced back to an 80% LVR loan?

Eg Bought at $200K, loan $180K (90%) pay MI approx $2000

Property increased to $225K - can you refinance loan to 80% (loan still 80%) and receive part of my mortgage insurance premium back (approx $2000)

OSS

We did, by refinancing with another bank. You only will get about 20% - 40% of the money back though, depending on whether you refinance within one or two years. After that you don't seem to get anything back.

Just ring your mortgage insurer about it to find out the exact amounts. We were with IMB at the time and got 40% of it back for refinancing within a year.

Hiya

yes 40 % refund is common within 12 mths

In most instances Id have to ask the qeustion - but why ?

Most of my clients rub their hands to get their deposit money back and do another deal as follows

New value = 225, loan topped up to 90 % of new value = 202 500,

Add the new lmi premium to the loan and there you go. Deposit and costs for another property of around 250 k in QLD , or enough security for a 70 k fully margined mf portfolio.

ta

rolf