Hi,
I have a property that I bought in 2011 that I paid LMI on and have had revalued this week , which eventually came back in my favour (another thread).
I am looking to borrow against this property to buy some land. Now the NAB has pre-approved my loan and my serviceability is not a problem. However there is not enough equity in the above property and they said I can still borrow the money but may have to pay LMI.
My understanding is that once you pay LMI that premium remains on the loan and only need to pay again if the LMI amount would increase.
To clarify .....
In 2011 (Property A)
purchased price : $ 340K
Loan : $ 323K
LVR : 95%
LMI : $ 8965
In 2014 (Property A)
Value : $ 430K
Loan : $ 298K
So now I would like to borrow another: $ 320K (land price, stamp duty , fees etc)
Can I re structure my loans to:
Property A Loan : $ 375K
Property A Value : $ 430K
LVR : 87%
LMI approx : $ 5500
Land Value : $ 305K
Land loan : $ 240K
LVR : 80%
This should avoid LMI on the land loan and the LMI on Property A is less than the original premium paid.
Does that mean I can Avoid LMI at all in this situation ????
I am not sure if I have this right or not....any help would be great.
Oh and Apologies for the massive post, but I hope I got all the details in one go.
Cheers
I have a property that I bought in 2011 that I paid LMI on and have had revalued this week , which eventually came back in my favour (another thread).
I am looking to borrow against this property to buy some land. Now the NAB has pre-approved my loan and my serviceability is not a problem. However there is not enough equity in the above property and they said I can still borrow the money but may have to pay LMI.
My understanding is that once you pay LMI that premium remains on the loan and only need to pay again if the LMI amount would increase.
To clarify .....
In 2011 (Property A)
purchased price : $ 340K
Loan : $ 323K
LVR : 95%
LMI : $ 8965
In 2014 (Property A)
Value : $ 430K
Loan : $ 298K
So now I would like to borrow another: $ 320K (land price, stamp duty , fees etc)
Can I re structure my loans to:
Property A Loan : $ 375K
Property A Value : $ 430K
LVR : 87%
LMI approx : $ 5500
Land Value : $ 305K
Land loan : $ 240K
LVR : 80%
This should avoid LMI on the land loan and the LMI on Property A is less than the original premium paid.
Does that mean I can Avoid LMI at all in this situation ????
I am not sure if I have this right or not....any help would be great.
Oh and Apologies for the massive post, but I hope I got all the details in one go.
Cheers