Hi,
Does anyone know of lenders who still offer 95% loans with LMI capitalised onto the loan for investment properties?
Thanks.
Yes but few and far between.
Need good credit score and accept that it is standard variable rate only.
Also would need to be in an accepted post code area for the MI.
Richard Taylor | Australia's leading private lender
Yes it can still be done however as Richard has mentioned it is very strict. The basic criteria are:
- 3% genuine savings
- Mnimum 6 months in job (ideally 12)
- Few enquiries on your credit file
- Low consumer debts
- Acceptable credit score (based on location, assets, liabilities, credit file, occupation and many other aspects).
- Current rates from 6.9% upwards so they are still quite comeptitive.
Good luck!
Who do you bank with?
Banks prefer existing clients. If you have a credit card or existing loan with CBA and have had it more than 6 months – youcan have 95% plus LMI. Policy is no different than a 90% lend.
Not every lender requires you to be an existing customer. In addition to this some do not allow even existing customers to borrow 95% and have strange definitions of what an existing customer actually is! Borrowing 95% is very much a specialist area and choosing the right lender requires a full understanding of your situation.
Just had one approved today for 95% + LMI on an investment loan and the clients certainly didnt Bank with the lender.
Richard Taylor | Australia's leading private lender
Richard / Otto,
I’m certainly not saying you can only get a 95% plus LMI with your existing lender however if anyone has a Cba credit card and has had it for 6 months – they qualify for 95% and the mortgage insurer doesn’t even look at the deal. A bit of forward planning would say if you’re thinking of buying – get a 1k credit card from your local branch.
At $350 p/a which covers all your set up costs (no Val fees legal fees etc), gives you unlimited bank accounts / splits without extra fees, no annual fee on a credit card, and discounts for insurance etc….
It beats Any non bank lender in the market!
They even self insure some of these which means up to 25% savings on your LMI.They very rarely self insure at 95%, it is much more common for existing customers at 90% LVR. The self insurance saves stamp duty on the premium so it is a maximum saving of around 10%.
Mortgage House could possibly help you
133 144
You must be logged in to reply to this topic. If you don't have an account, you can register here.
