90% with MI

I have bought 2 properties off the plan, one maturing in 2003 and the other in 2004 secured by deposit bonds. I would like to finance these at 90% and pay MI if necessary (though would prefer not to). Which banks will lend 90% and will any do so without MI? I can get the 10% deposit plus costs from lines of credit. Does MI get harder to get the more properties you have or do they see you as a safer bet if you have been covering all your loans?

Donna L
Hi Donna

The more exposure you have the less likely that an LMI provider will like your proposal.

OTP and LMI are practically mutually exclusive. Most LMI providers will not look at the deal until it is within 3 to 5 months of settlement.

Best way is to speak with a a good independent broker as you get closer to settlement.

Much also depends on the location AND the type of development. CBD locns and warehouse type conrsions are a general no no with lmi, but most things are possible.

I have seen an ad in the API magazine which offers loans for properties secured off the plan at 80% of valuation not purchase price (I think-going from memory here). Maybe you could get in without paying any deposit? Rolf do you know any lenders that would do this?


Many will take val over contract, indeed you can even get them through at 90 %.

Cant be done ? - just did it last month, once at 90 the other at 80% the security has to be good quality.


Final Valuation

I have a lender who will do a loan based on expected completed valuation.

They are out there.