Hi There,
I am a new investor, just bought my 1st investment property and i borrowed 80%, and I used my house equity to pay the 20% deposit.
Now, I am thinking about buying my 2nd IP, my buyers agent is advising me to borrow 90% and pay mortgage insurance, and keep some equity to buy my 3rd property.
At the same time, my mortgage broker advised not to pay LMI, as I still have equity to cover the 20%. and do not pay extra money that i can avoid. and if i need to borrow more, she can work this out.
I am a bit confused, not clear based on what the bank will approve my 3rd property, as my income is not expected to double in the next year. and I want to use the equity built in the IP's to secure the next one.
I would appreciate your help and advice.
Thanks
Ram
I am a new investor, just bought my 1st investment property and i borrowed 80%, and I used my house equity to pay the 20% deposit.
Now, I am thinking about buying my 2nd IP, my buyers agent is advising me to borrow 90% and pay mortgage insurance, and keep some equity to buy my 3rd property.
At the same time, my mortgage broker advised not to pay LMI, as I still have equity to cover the 20%. and do not pay extra money that i can avoid. and if i need to borrow more, she can work this out.
I am a bit confused, not clear based on what the bank will approve my 3rd property, as my income is not expected to double in the next year. and I want to use the equity built in the IP's to secure the next one.
I would appreciate your help and advice.
Thanks
Ram