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  • Profile photo of First timerFirst timer
    Participant
    @first-timer
    Join Date: 2013
    Post Count: 5
    June 8, 2016 - 7:35 am

    Thanks very much for the reply.

    Some additional information for concideration.

    Im not going to be able to avoid LMI. So can I borrow to say 88% of my current PPOR thus setting up a seperate split loan of:

    500k x 88% = 440k (less 320k owing)
    So $120k

    This way I will be able to achive the new IP loan at 80%.

    Then in a years time move into the IP and claim the LMI as taxable debt on the old PPOR?

    Thanks again

    Profile photo of First timerFirst timer
    Participant
    @first-timer
    Join Date: 2013
    Post Count: 5
    July 13, 2013 - 5:01 am

    Cheers Jamie this is now making a lot more sense. Really appreciate this advice.

    One final question:

    For loan set up as above and in particular Loan 2. How much equity can I get off my PPOR. Will banks lend 90% and will there be any LMI tacked on if I do so???

    Cheers,

    Profile photo of First timerFirst timer
    Participant
    @first-timer
    Join Date: 2013
    Post Count: 5
    July 13, 2013 - 12:24 am

    Thanks for your reply Catalyst. Any help is much appreciated.

    So potentially I could set up a LOC of  90% of 425k less what is owing on the loan  = 27,500

    And use this as a LOC to cover deposit/legals on IP.

    So my next newbie question is, what would the LMI amount be on borrowing 90% of PPOR and would it be worth doing?

    Cheers,

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