[First timerParticipant@first-timerJoin Date: 2013Post Count: 5]

June 8, 2016 - 7:35 am

Thanks very much for the reply.

Some additional information for concideration.

Im not going to be able to avoid LMI. So can I borrow to say 88% of my current PPOR thus setting up a seperate split loan of:

500k x 88% = 440k (less 320k owing)
So $120k

This way I will be able to achive the new IP loan at 80%.

Then in a years time move into the IP and claim the LMI as taxable debt on the old PPOR?

Thanks again

[First timerParticipant@first-timerJoin Date: 2013Post Count: 5]

July 13, 2013 - 5:01 am

Cheers Jamie this is now making a lot more sense. Really appreciate this advice.

One final question:

For loan set up as above and in particular Loan 2. How much equity can I get off my PPOR. Will banks lend 90% and will there be any LMI tacked on if I do so???

Cheers,

[First timerParticipant@first-timerJoin Date: 2013Post Count: 5]

July 13, 2013 - 12:24 am

Thanks for your reply Catalyst. Any help is much appreciated.

So potentially I could set up a LOC of  90% of 425k less what is owing on the loan  = 27,500

And use this as a LOC to cover deposit/legals on IP.

So my next newbie question is, what would the LMI amount be on borrowing 90% of PPOR and would it be worth doing?

Cheers,