Currently I got 2 properties and signed another contract (3rd and a 4th-semi detached). I wanted to use my existing equity to fund the deposit and closing costs for this new property. Based on the valuation carried out, the bank agrees to lend me $221,000 for the new property which is valued at $216,000. On top of that the bank will capitalise the LMI and I was told its going to be around $7,200. Based on my understanding, this is about +3% LMI which is a large %.
If anyone knows well about how the banks calculate LMI in similar scenarios (using existing equity and 95% borrowing, 97% with LMI), please help me to figure out whether $7200 is ok or not. I want to be educated about how LMI works when equity comes in to play.
Thank you
DonW
Hi Guys,
Have I asked a silly question above?
Cheers
hi don. cant really help you out at all im afraid but im in the same boat. just about to buy my 3rd and 4th and was going to go to the bank tomo to see what they could do for me. i was going to have a look at other lenders aswell to see what they can do. my advice is dont limit yourself to one bank. shop around and see what they can do.
ps. if any one has any suggestions on other lending options i would love to hear of them.
http://money.ninemsn.com.au/article.aspx?id=100613
http://www.homeloanexperts.com.au/no_deposit/no_deposit_LMI.php#rates
http://mortgageinsurance.genworth.com/RatesAndGuidelines/RateFinder.aspxGive you a rough guide only the banks have the exact lmi calculators maybe a mortgage broker could have software that works it out for a customer
It will also vary considerably from lender to lender, mortgage insurer to insurer, with some lenders will depend on whether the loan is P & I or IO and also will be a sliding scale depending on your total exposure with that lender (scale increases upto $300K between $300-500K and more than $500K).
Richard Taylor | Australia's leading private lender
3% is the rough figure for a 97% LVR loan.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thank you all for your valuable input. much appreciated..
Hmmm… I thought that the banks only lend 90%LVR plus cost…
Which bank lender??95% is still around
95% Plus LMI is still around also
Richard Taylor | Australia's leading private lender
95% Plus LMI is still around also although
Richard Taylor | Australia's leading private lender
95% Plus LMI is still around also although it
Richard Taylor | Australia's leading private lender
95% Plus LMI is still around also although it is
Richard Taylor | Australia's leading private lender
95% Plus LMI is still around also although it is not
Richard Taylor | Australia's leading private lender
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