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LVRshay1975 [6 Posts] Hi, My question is how are they working out my LVR, because I don't want to pay the LMI? So either I want to reduce the amount that I can borrow to 80% LVR and avoid LMI or wait till I have saved enough till I reduce the LVR to 80%. There is around $100k equity in my unit which is being used to calculate this somehow. I understand what LVR is and LMI and so on, I just don't get how they are working it out using the equity. If I know that, then I can work on the figures myself. Thanks in advance Terryw [6308 Posts]  LVR is just loan divided by value. So if you loan of $630,000 is 95%, the value must be around $663,158 Terryw   shay1975 [6 Posts] I understand that, but does that mean the max I could borrow to avoid LMI would be around 529k (80%). I don't want to dip into savings, but use the equity only to invest and I want to avoid the LMI as it is a waste of money. I have just been trying to figure how they came to this max value I could borrow from the details given to them Based on that, the worked out max I could borrow was 630k at 95% LVR. Am I making sense? Thanks in advance Terryw [6308 Posts] Hi I am not exactly sure what you are saying, but basically you can borrow up to 80% of the value of the security without incurring LMI. so if your property was valued at $600,000, then max loan without LMI would be $480,000. Maybe the figures given by the bank are a bit out as they have calculated the 95% loan and then added the LMI on top of this figure. Terryw |
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