330,000 x 80% = $264,000
(this is the max loan in total to avoid LMI)$264,000 – existing loan of $255,000 = $9,000
(= the max extra you could take out without LMI)If you wanted to borrow more and were willing to pay LMI you could go to 90%
$330,000 x 90% = $297,000
Less current loan of $255,000
= $42,000 extra(LMI may be able to be added to the loan with some lenders, others make you pay it or take it out of the money available)
BTW it is very risky to buy off the plan. What happens if your circumstances change and you cannot get a loan = you cannot settle.
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
We are both in fairly secure jobs particularly me partner who works for the government. If i were to be out of a job it would only be for a short time.
EDIT:
I dont see how i would avoid LMI to be honest. If the consenses it to have the loan interest only, and not put extra funds into it, how would i be able to gain enough equity to avoid LMI without having to wait 10 years?
In the early days of investing it is very hard to avoid LMI. Just keep saving and letting the growth kick in and you will get there.
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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