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Australia’s largest insurer raises LMI pricing loader

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Australian Broker | 06 Jan 2017, 08:00 AM Agree 0
The firm has announced an increase in the cost of lenders’ mortgage insurance for investors as the risk of default trends upwards
  • Really? | 06 Jan 2017, 09:09 AM Agree 0
    Ned Kelly must have wished he was born in this time period......
  • Aging broker | 09 Jan 2017, 11:25 AM Agree 0
    How about a royal commission into the LMI industry instead of the banks, Shorten.
  • Broker | 09 Jan 2017, 11:50 AM Agree 0
    Easy decision to make when you already know that your main competitor will do the same isn't it , very much like our banks do.
  • Paul Sheedy | 10 Jan 2017, 12:28 PM Agree 0
    The LMI business in Australia has to be one of the most lucrative of all time. They say, "Premiums haven't increased for 3 years". Nor should they, if based on a percentage of the loan amount and the higher the LVR the higher percentage! Look at calculations on property Stamp Duty in Victoria, it hasn't increased in well over 30 yrs. The cost has sky rocketed based on the values increasing, the percentages have stayed the same.
    Most of the loans that required LMI just 2 years ago are now out of LMI territory, because values have increased so much. The downside is that new loans have a degree of added risk, if property prices fall over the next couple of years, but when compared with the numbers held on their books, it is a tiny proportion.
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