it seems a good cocr is accepted to be 10%, paying a 10% deposit.
however when i have seen the upfront costs in examples it never includes mortgage insurance if you don’t pay a 20% deposit.
is there a way to only pay a 10% deposit but avoid paying mortgage insurancethanks guys
easymoney[biggrin]
Easymoney,
If the IP is the only property which is being used for security, then you will not be able to avoid MI.
Cross-collateralising might be one way around this, however this solution is probably worse than paying a few thousand dollars in LMI.
There are quite a number of financiers who offer the capitalisation of MI into the loan.
thanks woodsman,
sounds like there’s no real way round it except to pay it, pretty much what i expected
easymoney[biggrin]
You maybe able to add the LMI ontop of the loan so that it is not payable upfront. That should boost your COC return.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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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