In my case, the loans I am considering does not allow capitalisation of the LMI. My LVR will be either just 90% or 95%. There is actually also a difference in variable rates of 0.10% between the two options.
The additional $5,500 of LMI and interest will give me access to $16,600 (net $10,100k) for risk mitigation or for my next property purchase. Note that LMI is tax deductible over 5 years so I can get some of it back.
All my spare cash will sit in the offset account (including $10,100k saved), my total loan interest for 95% LVR will be about $650 pa higher than the 90% LVR option.
The additional $5,500 of LMI and interest will give me access to $16,600 (net $10,100k) for risk mitigation or for my next property purchase. Note that LMI is tax deductible over 5 years so I can get some of it back.
All my spare cash will sit in the offset account (including $10,100k saved), my total loan interest for 95% LVR will be about $650 pa higher than the 90% LVR option.
