Tag Archives: LMI

Mortgage Insurance Through The Roof, And Other Nasty Signs

7 Jul

From the Sunday Telegraph:

PREMIUMS have gone through the roof for the supposed “insurance” that a quarter of all homebuyers have to pay when taking out a loan.

Lenders Mortgage Insurance for a borrower with a typical 10 per cent deposit on a $500,000 property has risen from less than $6000 last year to nearly $9000, a surge of close to 50 per cent according to brokers Home Loan Experts.

… LMI has been used in more than two million loans but is poorly understood and is rarely discussed in detail. It is charged whenever a borrower has a deposit of less than 20 per cent. Many of those who pay it don’t even realise it protects the bank, not them.

In August 2011, then Treasurer Wayne Swan announced the introduction of a one-page fact sheet on LMI. Nearly two years on it still isn’t in place. It is “close” to being in place, according to the office of Assistant Treasurer David Bradbury.

Incredibly, when it is, it won’t even nominate the cost. And it is unlikely to point out that LMI is neither portable nor refundable.

That means any household looking to refinance with another lender faces paying thousands of dollars in LMI for a second time, unless they have at least 20 per cent equity in their home.

Mortgage brokers and consumer groups say this is undermining the Government’s efforts to increase competition in the home-loan market because having to pay LMI again makes switching lenders financially unviable.

… Home Loan Experts’ LMI premium increase calculations were based on comparing 2012 and 2013 rates for Genworth, one of the two major providers of lenders mortgage insurance in Australia.

When contacted for comment, Genworth said all executives authorised to speak to the media were on holidays.

Premiums levied by the other big provider, QBE, have also increased considerably. A mortgage broker who asked not to be named for fear of retribution said there had been a 17 per cent increase since 2010…

QBE would not provide any information on its premium rates. However, a spokeswoman did say premium increases were due to elevated claim levels and higher reinsurance costs, as well as lower investment income.

Lenders Mortgage Insurance is a perfect example of how our society is totally ruled by bankers.

Consider for a moment just how completely unjust … how utterly f***ed up … “our” financial system is:

  1. Banks are (exclusively) allowed to create new “credit” — backed by nothing — simply by typing new numbers into their computer.
  2. Banks are allowed to make profits by charging usury (interest) on that new “credit”, when they sign you up to a loan contract — which you must repay, or risk losing everything you own (bank-rupt).
  3. You have to pay for insurance to protect the bank in the event that you can not continue repayments of their “credit” + usury.
  4. You have to pay for that insurance again, if you want to transfer your 30-year debt+usury repayment obligations to a different bank.

The “finance” game is completely rigged.

They can’t lose.

In related news, the real estate industry lobby parasites are now calling on the government to let first home buyers tap into their superannuation savings, in order to come up with enough money for a deposit:

Call to supersize home deposits

Concerned about declining home ownership levels and a sharp fall in the proportion of buyers purchasing their first property, the Real Estate Institute of Australia (REIA) wants first homebuyers to be able to tap into their superannuation savings to help them scrape together a deposit.

… The institute says recent interest rate cuts have had little impact on the desire of potential first homebuyers to enter the market.

Er … hello?! Maybe that’s because Australian house prices — the highest on the planet — are simply too expensive?

Maybe it’s because the younger, internet-savvy generations are discovering the truth about our world-leading housing Ponzi?

Or maybe it’s because they do not want to be in debt to the bankers usurers for the rest of their working lives?

The institute cites two schemes operating overseas – in Singapore and Canada – that allow first homebuyers to use their superannuation savings when they buy a property.

… The REIA has also called on state and territory government to reverse the trend to only offer first homebuyers grants for new dwellings. “It’s excluding 80-odd per cent of people who have historically bought established homes,” [REIA President Peter] Bushby says.

When it comes to keeping the flow of property buyers coming in at the bottom of the Great Australian Housing Ponzi scheme, supporting and driving up prices (and thus, their commissions from property sales), there really is nothing — no bald-faced lie, no cunning deceit, no twisting of the truth — that these filthy rotten morally vacuous scumbags won’t say.

Perhaps it would be best for the common good if these people — along with the bankers, whose scraps they feed off — were all rounded up, taken down the back paddock, and their 100% self-serving thought processes “rebalanced” the good old-fashioned way.

With a small high velocity lead weight implanted in the side of their heads.

If you are not keenly interested in understanding and sharing the truth about the evil, deceitful, parasitic way in which the bankers’ debt-at-usury “money” system works, then you — your apathy, your ignorance, your disinterest — are a vital part of the reason why this predatory, cancerous system continues.

%d bloggers like this: