All Topics / Help Needed! / borrowin for new PPOR borrow more than 80%??

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  • Profile photo of PosEnterprisesPosEnterprises
    Member
    @posenterprises
    Join Date: 2006
    Post Count: 290
    Hi everyone if you were going to buy a new PPOR would you borrow more than 80% and pay the LMI to put in less of your equity or would you borrow just the 80% and cover the rest.
    Any thoughts?
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Depends. You could save on LMI – but your money would be tied up. If you use LMI you could have more money to invest elsewhere so I guess it boils down to whether you think you can invest your money at a higher return than the cost of the LMI taking tax into consideration too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of tess85tess85
    Member
    @tess85
    Join Date: 2007
    Post Count: 48

    brokers, feel free to correct me if i'm wrong but I think westpac has a 85% LVR package with no LMI? this might be an option if so?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Tess,

    Correct there are also couple of lenders that charge a risk fee instead of LMI which may also work out cheaper.

    Richard Taylor | Australia's leading private lender

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