All Topics / Overseas Deals / mortgage insurance

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  • Profile photo of easymoneyeasymoney
    Member
    @easymoney
    Join Date: 2005
    Post Count: 53

    it seems a good cocr is accepted to be 10%, paying a 10% deposit.
    however when i have seen the upfront costs in examples it never includes mortgage insurance if you don’t pay a 20% deposit.
    is there a way to only pay a 10% deposit but avoid paying mortgage insurance

    thanks guys

    easymoney[biggrin]

    Profile photo of woodsmanwoodsman
    Member
    @woodsman
    Join Date: 2004
    Post Count: 714

    Easymoney,

    If the IP is the only property which is being used for security, then you will not be able to avoid MI.

    Cross-collateralising might be one way around this, however this solution is probably worse than paying a few thousand dollars in LMI.

    There are quite a number of financiers who offer the capitalisation of MI into the loan.

    Profile photo of easymoneyeasymoney
    Member
    @easymoney
    Join Date: 2005
    Post Count: 53

    thanks woodsman,

    sounds like there’s no real way round it except to pay it, pretty much what i expected

    easymoney[biggrin]

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    You maybe able to add the LMI ontop of the loan so that it is not payable upfront. That should boost your COC return.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    Click below to email me

    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

Viewing 4 posts - 1 through 4 (of 4 total)

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