Yep definitely dont think you can get away with not having to pay LMI again if you switch to another lender. It doesnt make sense that you could as LMI insures the lender. So different lender new LMI which is cost passed onto you. if you stay with the same lender then you have already paid their insurance premium and therefore a change in structure could have the premiums varied.

Its unfortunate that you had your properties crossed when LMI is payable as this would have been charged on the $580k total rather then LMI 85% PPOR and LMI 90% IP. Second way would have worked out to be cheaper in LMI cost. Now only 6 months down the line and you’re stuck.

If you’re selling the PPOR are you planning to buy another? At what value? Have you discussed portability of replacing the new security with the old PPOR in the cross? Just an idea for now. You might still want to split the properties in which case knowing what your IP is currently worth upfront will be necessary. Might not help you with LMI if you go to another lender. But NAB should be able to order your valuations upfront maybe past 6 months or get a broker to do it.

Numbers I see in the new cross with new PPOR + IP
PPOR New value : $400k
IP (new valuation): $360k

New ratio: $580k/$760k = 76% LVR (NO LMI)

OR in order to split up the loans
you only need to pay off an additional $22k to get the IP to sub 80%LVR (if valuation is at $360k) and with $130k left over (leave out an additional amount for selling costs) you only need $100k (incl stamps) for a new $400k purchase at 80% LVR. This is assuming that is the value you are after. You will have to work out the numbers to see if paying down 22k on the IP is worth it or repaying LMI (pro rata). Considering you have already forked out on LMI I would suggest staying away from having to pay anymore LMI and un-cross asap.

• This reply was modified 10 years, 5 months ago by  Finance Broker.
• This reply was modified 10 years, 5 months ago by  Finance Broker.

Hi se7en,

I only recently realised you are talking to me:) need to get used to this. Finance Broker or Kathlene is fine.

If your mortgage is currently for a rental property I would say the tax savings you get on the interest paid would outweigh the expenses on the personal loan that may/may not be tax deductible. In terms of financial cost effectiveness I would say you are no better or worse off if you pay out the personal loan or keep the money in an offset facility. Again this really depends on the terms of the personal loan contract as we are speculating that you are paying the same amount for the 4 year term regardless of the type of rate, flat or reducing.\
cheers Kathlene

That’s fine Jamie. Thanks for the note. It does seem a little hostile here though. I’ve been thumbed down for stating my point of view in other threads. It seems like this is the Big Boys club and somewhat discriminating towards new members.

Hi,

I’m a broker too. New on the forum. You are welcome to check out my profile on linkedin (link is in my signature below). Sorry I dont have a recommendation for anyone in Sydney but have done a few interstate deals myself. Some of my clients moved over there and have stayed with me. Because we haven’t met you will have to send me certified identification for me to process your loan for you.You may find this tedious which is understandable. I’m sure someone from sydney is on this forum though so good luck with your search, i’m sure you’ll find someone soon enough.

cheers
kathlene

AMP does take actual repayments into account. I would say there could be other things that could affect your servicing at AMP. Like postcode of the property. If it is in high density or regional areas you could be looking at less rental income taken into account sometimes only 50% is acceptable. This could affect you with any bank however so you wont necessarily be able to fix this by going to another bank.

There’s nothing wrong with Macq trying to win business now. They may have failed brokers in the past but the deals they are offering are good for clients now. So there’s no reason for the client, in this case John, to stay away from them.

• This reply was modified 10 years, 6 months ago by  Finance Broker.

Doesnt anyone else use Macquarie? They can be as flexible as AMP within their DUA policy. I just did one this year for another investor with a hybrid trust setup. He just got his 11th property on portfolio using MACQ. He did not have the other properties with them yet. No foreign income though. I’m meeting up with Macq today and will find out about accepting foreign income, especially CNY. Will keep you posted.

Hi John,

with 2) Each bank sees your setup under a discretionary trust structure as one. So setting up multiple discretionary trust structures and going back to the same bank will not do any good as they see you as the same guarantor on all the investments. The trust structure protects your assets and does not protect the bank. Whether you setup another discretionary trust or not does not matter to the bank. That decision will be yours to make as long as it still suits your investment strategy.

As far as suggesting other lenders, As in the feeds above you have been given plenty of suggestions but whether your situation will fit the policy of any of these lenders will really be determined by how your case is presented to them and the research done. I would recommend talking to a broker as they will be able to do the research for you. But you may end up with a bad broker that could still make mistakes. So be careful when choosing one.

Another reason to use a broker rather then doing this yourself is to protect your credit score with the banks. There are some that would not penalize you for too many enquiries with other lenders but not all of them do. So why limit yourself when you already have a tricky situation. Try and get it right the first time. Hope all this feedback has helped you make your decision. Good luck with your future investments!