Hi there,
If I refinance a property will the banks take into account a valuation (growth in value) that brings me above 20% equity so that I do not have to pay LMI again? Or does the 20% equity have to be through payments.
Thanks
Sebastian
Your financier will have a valuation taken on your property when you re-finance. This will dictate what LVR you are borrowing and therefore any LMI liability.
So yes, capital growth may have taken your property from a LVR which requires you to pay LMI (above 80%) to a LVR which does not.
James
For you not to have to pay LMI the lender will lend on 80% of valuation.
I have noticed in the last couple of months that vals have been coming in quite short. So don’t be surprised if it comes in a bit less than what you think.
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
E:[email protected]
E:[email protected]Development Finance Specialist
Try an interest free loan. There is no LMI and refinances are easy if you have good 12 month history and it is an investment property or you have good serviceability.
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The forumite formally known as Big Rob
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