Mortgage Insurance might not even apply. In a lot of cases, you can place the loan with a 'Self Insured' funder, and significantly reduce your borrowing costs.
There is certainly more than one way to skin a cat.

If you are looking at a full doc loan (if you are PAYG employed or have Full Financials) then you have to decide how much you want to get the new property and go for it. One option to keep as much money left in your property at the end of the day would be to absolutely max out your existing property, to 90% + LMI in most cases, and use the funds to take out a loan for the new property. The new loan can be done without LMI in a lot of cases (with a Risk Fee instead) up to 95% + Risk Fee.
If you meet the no LMI policy, that alone will save you a couple of grand, and because you are selling your existing property in the very short term, you will be able to abuse the refund policy of the insurers. In most cases, if you pay the insured loan amount out within a short time, you will get a large chunck of your LMI premium back. The more you can borrow on your existing property, the lower the LVR will be on the new purchase, and the more your LMI refund will be.

If your existing property is worth 310k, then you should be able to free up about 49k.
Use your 49k for a 30k deposit on the new place, and keep the change for duties etc, and moving.
You now need a 92% LVR on the new O/O purchase. No worries (Unless you forgot to tell us you are a 7 time discharged bankrupt etc)
Move in to the new place. Sell the old place. Get a refund of 40% of the LMI you had to pay for the increase on your old loan.
Pay any of the leftover cash from the sale back into your loan to reduce the interest and retain as available redraw ' just in case' you need to access it in the future.

That might be one way to tackle the problem, but like Richard and I said, a 'Good' broker can help, and someone that does not think outside the square just assumes LMI is evil, everyone must pay it and everyone needs a 20% Deposit.

If you consider how much more expensive a suitable property is likley to be by the time borrowers save additional deposit funds etc, them most of the time LMI works out to be a pretty good deal.

You just need to learn how to work the system.

Let me know if you want help with the above suggestions.

Not to split hairs with you Richard, but if ANZ insure through PMI, thats not 'Self Insuring'. If ANZ insure through ANZ, that is self insuring.
In  an instance where funders 'Self Insure', they will generally charge a Risk Fee as a substitute for an LMI premium. Risk Fee is usually 30-50% cheaper than LMI.

It sounds like you need to include a special condition in the contract of sale on your existing property to allow you to rent it back for 3 months, and purchase the new property under an option agreement, so you can agree on a price now, and settle later. The option would allow you to access and alter (under the terms you set down), and you settle on the pre arranged price at a later date. For added security, you could also lodge a caveat over the optioned property for the value of any renovations you pay for, to reduce the chances of you ending up out of pocket.

I hope this helps.

I haven't looked yet, but it sounds like they have taught a bunch of people how to lose $12 to me.
There are a lot of forums out there that don't chargs? Why should this one. They should encourage people to join, and contribute.

Paying money to join forums seem the reverse of what they are getting at.

I will look at it anyway, but there is absolutely no way I will pay to join.

The short answer is YES.

It is OK to set up witht he Trust structure, as Trusts are not eligible for the grant. As long as the trust is the Title holder (or the Trustee a.t.f The trust), then there is no way you could have previously applied for the grant and thus you are still eligible.
The same goes for the overseas property. The Australian First Home Owners Grant is a one off payment, and will only apply the first time you (as an individual) appear on the title of an owner occupied property in Australia. (You are also eligible for the grant if you purchase a property and rent it out immediately, as long as it is your intention to Occupy the property within 6 months of purchase).

I hope this helps.

Richard,

CC had some massive securitisation issues late last year. Fortunately, a lot of the loans they wrote were 3 yr Fixed.
Mid June, they issued a notice to all their existing variable clients notifying them of a 0.9% increase to Full Doc loans, and a 1.95% increase to their Horizon loans (which takes in Maxi 90% Lo Doc and Maxi 80% No Doc.
They were also big on using MGIC for LMI purposes, as their credit team had a DUA (Delegated Undewriting Authority) to sign off LMI in house.
A large portion of the displaced clients will have nowhere to go, as they did not fit GE PMI policy even back then. I think it is disgusting, and the ACCC and ASIC are investigating.

The killer blow is also that mostly, their DEF's are 1.9% (Full and Lo Doc).

Bummer for the clients in the middle of the entire fiasco.

Angela,

If you would like to email me some basic information on your current rate, lender, when your existing loan settled and your income (both gross and taxable), I will be happy to provide you with some assistance.

Have an enjoyable day.

I am a big fan of this forum, but I don't think I have come across a thread where so much bad advice was given in such a short time.

Cash flow projections?

NO Bank will lend you money. They will consider 80% of the value, less debts?

James,

For your own safety and financial interests, forget pretty much everything that was just told to you.
You and your partner do not have to waste your time doing any kind of cash flow projections or similar analysis. Why? Because they use a fixed 'Living Cost' and Expense servicing calculator to asses your ability to repay, and no cash flow projections will change that. If you pass, all good. If you do not service = No Loan.

Also, the bank (assuming you are Full Doc) will lend you up to 95% of the COMBINED value of the security offered.

Marc's comment is completely incorrect and ill informed.

If your current property is worth $300k, your useable equity is 80% of this = $240k.

This means the banks will let you access 80% of the property's value for more investing, less any existing loans, and this is subject to loan serviceability.

You might pay a risk fee or mortgage insurance, but you are quite able to borrow more than 80%. It is a matter of how well you feey you are buying, and your level of comfortability in the debt.

Also, Marc's comment that no bank is also completely incorrect, considering he has no idea (clearly) how much rental income you might get from your potential purchase. I personally have several clients that have properties valued at 300,000 that rent for $575 – $625 per week. This would considerably assist you in setting up a new loan.

My opinion is that you should work within your comfortability level, don't over extend yourself and try to buy well.

As for the advice from the others, I think it speaks volumes for why some people think poorly of Brokers.

I wish you all the best.

Richard and Shaun are right. Your broker should have been able to offer you a couple of different options.

If you would like to find out more, just email me and I will be happy to provide you with an idea on how to solve your issue.

LOL. Richard might have been a gardener in a past life. Batten down the 'hedges' must be a flash back of some kind.
I believe the term you were looking for is 'Batten down the Hatches' , Rich.
 Anyway Angela, if you are looking for something a little more definite than 'still just about available', then I am also happy to give you a quote for some Lo Doc alternatives. At 8.77, I can only imagine Richard is talking about the MAV Plus Commonwealth Bank product, and you would need over 750,000 total borrowings just to qualify.

Anyway, no harm in shopping around. Email me at [email protected] and I will be happy to assist.