- Hi everyone if you were going to buy a new PPOR would you borrow more than 80% and pay the LMI to put in less of your equity or would you borrow just the 80% and cover the rest.Any thoughts?
Depends. You could save on LMI – but your money would be tied up. If you use LMI you could have more money to invest elsewhere so I guess it boils down to whether you think you can invest your money at a higher return than the cost of the LMI taking tax into consideration too.
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
brokers, feel free to correct me if i'm wrong but I think westpac has a 85% LVR package with no LMI? this might be an option if so?
Tess,
Correct there are also couple of lenders that charge a risk fee instead of LMI which may also work out cheaper.
Richard Taylor | Australia's leading private lender
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