The issue here also, is that the agent didn't mention that there would be any cost to the quotes, it was to my surprise when receiving my statements. I'm happy to pay for the work, that goes without saying, but charging on top just to do a quote is unacceptable. It is their duty to provide the best quote to give them the best chance they get the…

I was using a round figure only, these are not by any means the actual costs.

I have been doing some digging around on this the past few weeks as i feel that i may have missed out on a refund and how i can apply for this in the future.

http://www.homeloanexperts.com.au/lenders-mortgage-insurance/lmi-refund/

I found the above article and shows that my bank (ANZ) does not offer any refund on LMI. Each LMI providor and bank…[Read more]

A credit for the full amount paid initially and pay the new premium in full?

So essentially if i do not do a complete refinance, i will only have to pay the top up LMI not a complete new premium?

As mentioned, i paid the LMI for an 85% loan, if i was to up this to 90% in 12-18 months time (assuming growth also), i would only have to pay the difference between the 85% LMI premium today and the 90% LMI premium in the future?

Yes, that is the plan. I just wasn't' sure if there are any hidden fees once a formal approval had been given, such as their valuation, legal costs etc.

From what i understand the developer is using their own sales staff, not an external agency. Therefore there should not be large fixed commissions, i believe???

Whyalla is certainly looking to be a hotspot, however it would seem as though this is relying on the success of Olympic Dam. Personally, i would find this high risk based on one project.

Therefore i can initially estimate the depreciation (after careful calculations) and adjust either throughout the year after receiving the QS report or upon the next financial year?

The greater plan is to pay off my PPOR as fast as i can and i am working out if it is going to be better off in the long run to either refinance an IP and forfeit the deductions or sell and pay CGT.

Time will tell when the figures are in place.

But my question has been answered that i cannot claim the interest if i refinance an IP to pay off my…[Read more]

Terryw wrote:
That won't help because there would be a loan from property B which would need to be paid back when A is sold.

That’s ok, it does make sense that to be able to claim the interest as a deduction any funds drawn / refinance etc need to be spent on investment and not personal purposes.
Therefore if I wish to pay off my PPOR, I simply…[Read more]

So then from an accounting perspective, am i still able to claim the 100% deductions against the property and my income?

Interesting fact, i never considered that actual value of the LMI, only the LVR and just assumed the higher the LVR% the higher the cost.

Ok, so using Cross Collarterisation to link both loans / properties together, the bank has a better hold on my properties if anything goes wrong.

The only benefit that i can see from using this method is to limit the LMI i pay

1.
PPOR – value $650k / loan $470k ($180k equity)
Looking at buying property approx $350k (loan $370 incl costs)

Total…[Read more]

I have received confirmation from my first lender / current broker, he has said:

‘We use your property and the new property as security which means the Loans are taking into account the combined value of both properties therefore using the equity you have in your existing home. For simplicity we don’t need to draw down onyour existing home to 80%…[Read more]

Thanks for your comments, this is becoming clearer with each input. PPOR Loan 1 already has an offset set up against this loan.

From a financial view Jamie, why would i consider my PPOR loan as I/O? For what benefit will this provide in the new or distant future, keeping in mind that i do plan on adding a new property/ies every 2 yrs (depending…[Read more]

So essentially what i am wanting to do is reduce as much of my PPOR P/I loan but reallocate the available equity to an investment loan.

Therefore over time i consistently use my PPOR for equity and redraw and keep topping up the investment loan for a deposit on the next property??? But in reality, that investment / equity loan still uses my PPOR…[Read more]

In my mind, i have always thought it be best to pay down as much as you can of your non-deductible debt and use any additional funds to invest. So why would i extend the LVR on my PPOR?

Sure, yes i am accessing these funds for investment, therefore deductible, but if i draw at 90% ($115k), but only use $50k, will i only pay LMI on the amount used…[Read more]