I just brought my fist home with my g/f through Devine homes on 100% finace. What i want to know is once i build up some equity in the house say $50,000 (not to far off that now) can i use that as a deposit for a investment home? or would you say this is a bad idea?
Thank & merry x-mas.
A guy on his horse rides into town on friday, three days later he leaves on friday, how can that be?
Firstly, the horses name is Friday.
Regarding your equity, you will not be able to refinance up to the value of your property. You can go up as high as 95% but mortgage insurance will cost you around 3.5% of the loan amount. If you work with about 90% of the property value, that is how much equity you can use after your current loan is taken away.
Most borrowers will keep their borrowings under 80% of property value so they don’t waste thousands of dollars on mortgage insurance. This decision will come down to what value the new purchase will be. You will do your figures asking yourself – Is it worth paying mortgage insurance or not???
I hope this answers your question.
Robert Bou-Hamdan
Mortgage Adviser0414 347 771
[email protected]
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Comments made are of a general nature and should not be construed as individual advice.
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