Do LMI insurance companies prefer if you buy a property on a fixed interest rate or a variable rate or it doesn't matter?
Has no bearing whatsoever on the deal being assessed.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
It can sometimes enhance your borrowing capacity but as Richard said – it doesn't help with getting LMI approval.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: info@passgo.com.au
Exactly – some lenders will take the actual repayment rather than a sensitised repayment but the fact that you fixed the rate would not get a mortgage insurer to approve the deal if serviceability wasnt an issue.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks Richard & Jamie.
can a fixed loan inhance my borrowing capacity?
Cheers
Yes it can with some lenders.
Most of the majors it will have no bearing but a lot of others Yes it can.
We use a mix of variable / fixed rates for clients with a number of properties if serviceability is an issue.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
There was one lender that was particularly good with this – but they've since revised their policy (which is a bit of a shame) so it doesn't work quite as well.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: info@passgo.com.au
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