Hello
I have a question which I need a answer.
Say you purchase a property for $100000 financing the purchase using a 95% loan and paying for mortgage insurance.
You then get the property re-valued 12 months later. The new valuation of the property is $115000.
Is it posible to use the extra $15000 in equity as a 5% deposit / security on a property worth $300000 and obtain finance for the rest of the 95% value of the property ? ( I would assume if this is possible you would also need to pay for mortgage insurance again. Also I do understand you would need extra funds to pay for stamp duty, legals, extra.)
Hope the question isn’t to stupid.
Thanks for your helpThis is pretty well the case.
The additional equity can be used towards the next property and fees such as LMI and SD still need to be paid – depending on the numbers of course.
Some lenders will allow you to add LMI to the loan above the 95% LVR.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Todays Hot Rate
3 year fixed – 6.57%Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Another thing is your have to check your serviceability also before buying another property.
Cheers
PropertyGuRu [sultan]
Mortgage Consultant
[email protected]NZ loans and pre approval from 7.99%
Uncivilized,
Depending on the lender you borrowed 95% you may not be able to borrow 95% again, they may limit you to 90% for example.
Also I doubt you will be able to have a 95% lend with bank A (existing lender) and 95% with this same bank for investment (highly unlikely)… I think even Bank B (new lender at 95%) may turn you away if they use the same mortgage insurer as Bank A.
So be careful on this if Bank A won’t do two 95% deals, then make sure Bank B has a different Mortgage Insurer. This will be PMI or GE. Bankwest also uses a unique mortgage insurer which is like an offsider to PMI so they may be good too.
Good luck.
Lizzy
Liz
Mortgage Lender
ANZ is good with 95% loans (with the LMI added on top). They do multiple 95% loans, even on investment properties – I obtained 6 myself at 95%.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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