Hi,
I've been trying to find a straight answer to my question.
I currently have an existing home loan for $550k. My house is valued at $570 = LVR 96.5%
My LMI premium was $21k. Commbank Wealth package.
By the end of 2014, I expect the home value to be approx 590, with the loan balance around 525k, meaning my un-refinanced LVR is say 89%.
If i refinance internally with commbank, Can I borrow back up to 95% and pay the difference on the LMI, as follows:
New home value = $590k
Current Loan balance = $525k
Refinance to 95% LVR, new balance = 560.5k
Ive already paid LMI on 530k costing me $21k originally bringing my balance to ~550k. So do i pay a top up fee on the difference being insured (530 originally, now 560?)
If so, any idea how much?
Can i only refinance internally to 90%?
Thanks for your help.
That's correct you only pay for the difference in terms of the top up.
How much depends which state your in…but it be around $900-$1,200 for 95% ( dont quote me ..this is just off the top of my head..)
95% internal refinance is possible but by no means easy, also from exp CBA will require very good reason and they will want to control the funds.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Mick's right, a 95% internal refi with CBA is no easy feat.
What will be the purpose of the equity release? Future IP purchase prob won't cut it without a contract of sale. Home improvements with some quotes can do the trick – we got a $48k increase over the line at 95% based on this purpose.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks guys, I wasn't aware it could be difficult as your always hear the stories 'refinance to release equity' .. I didnt realize there were specific uses for the money your allowed if you get it across the line.
If you refinance to say 90% does that open up more doors? i.e. less strict lending criteria? 85% less again? Or it as simple as, an internal refinance means your limited, regardless.
Thanks
depends on the bank, some banks are more flexible with cash out.
But yes it does get easier as your LVR reduces. At 85% or below theres pretty much no restrictions.
Most investors stay around the 90% mark max for equity release.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
CBA aren't all that transparent in their cash-out policy. They will do high LVR cash-outs but will sometimes need evidence in the way of a contract of sale, renovation quotes, etc.
At less than 80% there's usually no dramas – the brokers notes will suffice.
At 95% LVR they want to see where that cash is going.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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