I have recently refinanced my PPOR loan and included a line of credit which was used as deposit for a recent IP purchase. The combined LVR was 85%
Over the next 1-2 years, i want to look at adding a 2nd IP and want to use the LOC again for deposit / costs.
My question is, assuming growth on my PPOR, if i only top up the LOC and don't touch the HL, does this affect my overall LVR and will i have to pay LMI again if i go over 80%?
Yes and yes
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
Hi Franky
Weather your LVR changes depends on how much the value of your property has gone up (that's assuming that it goes up).
The LMI should only be a small increase on the existing premium (ie. not a whole new LMI premium which will cost thousands).
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
So essentially if i do not do a complete refinance, i will only have to pay the top up LMI not a complete new premium?
As mentioned, i paid the LMI for an 85% loan, if i was to up this to 90% in 12-18 months time (assuming growth also), i would only have to pay the difference between the 85% LMI premium today and the 90% LMI premium in the future?
you would get a credit for lmi paid.
Jamie -Whether…!!!
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
A credit for the full amount paid initially and pay the new premium in full?
yes
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
PFrankyX wrote:So essentially if i do not do a complete refinance, i will only have to pay the top up LMI not a complete new premium?As mentioned, i paid the LMI for an 85% loan, if i was to up this to 90% in 12-18 months time (assuming growth also), i would only have to pay the difference between the 85% LMI premium today and the 90% LMI premium in the future?
Correct.
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
Terryw wrote:Jamie -Whether…!!!
lol – I'm better with numbers, I promise.
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
I have been doing some digging around on this the past few weeks as i feel that i may have missed out on a refund and how i can apply for this in the future.
http://www.homeloanexperts.com.au/lenders-mortgage-insurance/lmi-refund/
I found the above article and shows that my bank (ANZ) does not offer any refund on LMI. Each LMI providor and bank have their own individual policies on this.
I would recommend reading the full article and seeing if you are eligible for a refund when you refinance and if you have to pay LMI again.
PFranky
Don't worry you are not alone with Anz as non of the major lender now offer a refund on your LMI premium.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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