Mortgage Protection Insurance Refund

Mortgage protection insurance is an add-on insurance that may be added to your home loan.

What is mortgage insurance?

Mortgage protection insurance is a form of consumer credit insurance and often falls into the category of junk insurance. Just like other consumer credit insurances, it generally covers you for one or more of the following:

1. Life
2. Disability
3. Involuntary Unemployment
4. Accident and Illness

Applying for a home loan can be a time-consuming and often stressful process. This is especially true when you have to borrow more than the home’s value. In this type of scenario, you may have had to purchase Lenders Mortgage Insurance (LMI.) Many homeowners do not realise that they could be eligible for a partial insurance refund if they repay their mortgage in the first two years. Banks/lenders should notify customers about their options to stop paying for this insurance, however, they often fail to do so.

This lack of transparency leads to Australians paying more mortgage insurance than they should. We’re here to fix this at Claimo and get you back your hard-earned money

Am I eligible for a refund on my mortgage insurance?

There are many reasons why you may be eligible for a refund.

1. It might be worthless to you. For example, depending on your employment contract at the time you purchased the policy, it may not cover you.

2. Premiums are high. Premiums can be expensive as mortgages are sold for decades.

3. Payments might not cover the whole mortgage. For example, mortgage protection may only cover you for a brief period. That means, that there will still be a substantial amount left to pay on your mortgage.

4. A sneaky sales process. A salesperson will sometimes add mortgage protection onto a home loan without explaining what insurance is, or without you knowing.