Hi All;
Had a wondering today, I purchased my current property in Bathurst for $260,000 with 5% deposit. (LMI took it to 97% –> 251k). Valuation is now $300,000 with loan balance of $240,000.
I understand that to do equity release, needs to be the 80% of 300k, which is 240k, so I could access 0$, but because I paid the LMI to 95%, am I able to take loan to property value back to 95% ($285,000) giving me access to 45k. The reason I ask this is because I intend to live in my current property for another 12-18 months before moving back to the Illawarra, but wondering if in this time, the perfect house popped up, I'd be able to snap it up!
Thanks;
Hi Tim
Some lenders allow you take the loan up to 90% of the properties value. So in this instance, if the property is worth $300k – you take the loan up to 90% which is $270k.
This $270k minus the current loan of $240k gives you an equity release of $30k
There are certain lenders that will do an equity release up to 95% but they are tough deals to get approved.
If you've already paid LMI, then you won't be charged a new premium – just an increase on the existing or an admin charge.
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]
thumbs up; thanks Jamie
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