How do you do that? Do I contact the bank?
Do they come inside or do a drive by or just sit behind a computer and crunch numbers?
When you apply for a loan, the lender will perform some sort of valuation as part of their process. Often it's a simple drive-by or they'll run an automated 'desktop valuation'. Given you're looking at 90% or higher, the bank will likely want a valuer to inspect the property inside and out.
This is part of the application process. You only need to allow the valuer access to the property if they contact you and request it.
Was taking out a 95% loan a bad idea? My justification was it meant I had ready access to my cash and with it in an offset it kept my monthly repayments to about the same anyway... Also as its part of the loan does that mean its a deductible part of the debt?
95% in itself isn't bad, but there is a point where the benefit becomes fairly small when compared to the costs. As Brady suggests, it's unlikely to be a big deal when the loan amounts are reasonably small.
There are however scenarios where going from a 90% + LMI lend vs going to a 95% including LMI lend becomes expensive. I've literally seen figures on $500k+ loans where for every $1000 extra you borrow, you give $700 straight back in LMI premiums. It's fine if that's what it takes to execute the strategy and get the deals done, but for me it's a bitter pill to swallow.