Hi all here's my situation:
I have an IP bought for $400k now worth $425k. $353k mortgage with CBA. I had a guarantor so no mortgage insurance.
PPOR bought for and worth $400k, $360k mortgage with ANZ I only had $50k deposit so have to pay LMI.
Now I want to either move the ANZ loan to the CBA or move both loans to a credit union, is there anyway i can avoid LMI? I now have $100k cash in an ANZ offset account but don't want to pay an extra 30/40k into the PPOR loan to avoid LMI as I need that money for a development.
thanks nice to meet you all.
Hi Longman
Welcome to the forum and I hope you enjoy your time with us.
The odd lender who wont charge LMI over 80% these days but charge an equivalent by way of a risk fee or similar.
None of the Credit unions will waive LMI so they are out.Guess question would be why do you want to refinance the loans ?
Richard Taylor | Australia's leading private lender
Hi Richard I see, well i wanted to move both loans into one institution for easy management, and ANZ have account keeping fees and a higher interest rate then the credit unions. I may just stay put if there's no other way, thanks!
Under Breakfree Anz have no account keeping fees.
Richard Taylor | Australia's leading private lender
Maybe wait for a bit more equity to build up
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
Be careful because when you put your loans with the same bank they are automatically cross colateralised.
This means that if you default on one loan and your property doesn’t pay back the loan in full they can force the sale of your other property. So for that reason it might be better to stay with different banks.At the moment you seem leveraged to the hilt with your properties. I know Bank West have cheaper interest than most other banks (and St George do a pretty good home loan too), but I doubt you could avoid paying the lender’s insurance.
You could wait until you have more equity in your properties and then refinance. It might be worth seeing a mortgage broker to ensure you get the best deal.
Ryan McLean
http://CashFlowCapital.com.au
Positive Cash Flow Properties Are Just a Click AwayRyan McLean | On Property
http://onproperty.com.au
Email Meryan mclean wrote:Be careful because when you put your loans with the same bank they are automatically cross colateralised.As long as you let the banker know you don’t want them crossed you should have no problem. In some cases the banker needs to load two new applications as opposed to one on their computer. Apart from that there is no interal policy I have seen within a bank to say you must cross.
All loan contracts state the security offerred – if they are crossed both properties are listed in the contract. If they are seperate you will have different contracts – each with one property listed in the security schedule.
I admit that is my understanding also as i have never seen with the exception of St George a policy that says the loans "Must" be crossed when both loans are with the same Bank.
Richard Taylor | Australia's leading private lender
thanks for reply guys, Richard Ive read up the breakfree package thanks but I think there'd be some sort of an annual fee is that right? i have a MAV package from CBA and an annual fee of $300 yeah i get a better rate 6.36 i think but the credit unions can do around the same with no annnual fees, no account keeping fees and 100% offset with no fees. ANZ charges $10/month for the offset..
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