LMI

Viewing 5 posts - 1 through 5 (of 5 total)

Alexia
Participant
@alexia
Join Date: 2011
Post Count: 28
November 3, 2013 - 9:31 am
Hi All,
This is probably a stupid question but in regards to the LMI amount – does it just get expenses against the property or does it get added to the cost price of the property?
Cheers
Alexia
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
November 3, 2013 - 9:43 am
Hi Alexia
It's not a stupid question at all. Usually it can be included on top of the loan – it depends on the lenders policy, the amount you need to borrow, the type of property and whether it's owner occupied or an investment.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mortgage Broker assisting clients Australia wide Email: [email protected]
Alexia
Participant
@alexia
Join Date: 2011
Post Count: 28
November 3, 2013 - 10:09 am
Hi Jamie,
Thanks for your reply.
The LMI has been added on top of my loan which was for an IP – The LMI is about 2k extra.
Just trying to work out how to treat the 2k from an accounting point of view?
Thanks
Alexia
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
November 3, 2013 - 11:09 am
It's a borrowing expense – deductible over 5 years or the term of the loan, whichever is shorter.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
November 3, 2013 - 12:38 pm
Hi Alexia
As Jamie mentioned and then the cream is you get to claim the interest on the LMI premium for as long as you own the property and have the loan.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender