big banks 85 no LMI?
- Thread starter dagg3r
- Start date
the rock was still doing them
Not a big bank, but part of the MyState group
ta
rolf
Not a big bank, but part of the MyState group
ta
rolf
Couple of the smaller dudes do no LMI at 85%.
Couple of professions are eligible for up to 90% no LMI such as but not limited to:
1. Medical Professionals
2. Solicitors/Lawyers
3. Engineers
4. Athletes
5. Celebrities
6. Politicians
There are certain conditions for each of these professionals such as qualifications, minimum income levels, etc.
.... or if you don't fit either box then just go 85% capitalise the LMI and if its an investment its tax deductible for the first 5 years. So no biggie biggie.
Couple of professions are eligible for up to 90% no LMI such as but not limited to:
1. Medical Professionals
2. Solicitors/Lawyers
3. Engineers
4. Athletes
5. Celebrities
6. Politicians
There are certain conditions for each of these professionals such as qualifications, minimum income levels, etc.
.... or if you don't fit either box then just go 85% capitalise the LMI and if its an investment its tax deductible for the first 5 years. So no biggie biggie.
I haven't used the rock since the take over from my state a few years back so wonder how its all going (other than recruiting a bunch of Westpac and St George staff).
Citi does 85%
Westpac does 90% for some people
Westpac does 90% for some people
Might go for a run this afternoon in the name of not paying LMI then!
No need to go for a run - just get me a 6 figure contract that has at least 1 year remaining on it.
Citi does refis also I think
Citibank's no LMI products make good economic sense when you compare them with Citibank's LMI premiums, but they don't stack up quite so well against competitors in a lot of cases.
Citibank has some of the most expensive LMI premiums around. If you're taking an 85% loan the LMI waiver products have higher rates, so the break even point is roughly 6-10 years. This is a reasonable deal.
Other lenders LMI premiums are significantly lower however. When compared with this, the cost of the Citibank loan can be more expensive after about 2-3 years.
It all depends on the price point, lender being compared to, actual LVR, longer term plans, etc. For this to be worthwhile, you do need to look closely and analyse the figures properly. "Pay no LMI", is a good marketing proposition, and it sometimes works well, but sometimes it doesn't.
Citibank has some of the most expensive LMI premiums around. If you're taking an 85% loan the LMI waiver products have higher rates, so the break even point is roughly 6-10 years. This is a reasonable deal.
Other lenders LMI premiums are significantly lower however. When compared with this, the cost of the Citibank loan can be more expensive after about 2-3 years.
It all depends on the price point, lender being compared to, actual LVR, longer term plans, etc. For this to be worthwhile, you do need to look closely and analyse the figures properly. "Pay no LMI", is a good marketing proposition, and it sometimes works well, but sometimes it doesn't.
Interested to hear people's views on their portfolio growth strategies in regards to LMI. My conundrum is this: do you buy just one property at 80/20, or buy two at 90/10 each (and pay LMI capitalized on to the loans)? Sure, you'd be up for double the stamp duty plus purchase/due diligence costs, but it would enable you to buy two in one go, doubling your portfolio growth. If you are buying in stable/sensible markets too, you'll also be protected from the risk that ordinarily comes with having 90/10 ratios on properties.
What are people's thoughts on this strategy?
What are people's thoughts on this strategy?
I know it's not totally correlated but the banks carry only about 5% capital against their loans so I think borrowing 90% is absolutely ok if the risk profile and property in question are reasonable .
All else being equal, I think it's a great way to accumulate property early on. If your risk profile and plans and goals are in line with that kind of strategy, I reckon go for it.
I'm with Westpac and waiting on evals on my portfolio to hopefully release equity and go shopping
Im currently on 72% LVR on approx $1.8m but have been using 80% LVR in my calcs.
Interested in going to 90% LVR if it means I can skip on LMI.
What boxes do I need to tick? I'm a systems engineer with 12 years experience on $120k excluding comms and bonuses.
Do they take my wife's income into consideration for LMI?
Im currently on 72% LVR on approx $1.8m but have been using 80% LVR in my calcs.
Interested in going to 90% LVR if it means I can skip on LMI.
What boxes do I need to tick? I'm a systems engineer with 12 years experience on $120k excluding comms and bonuses.
Do they take my wife's income into consideration for LMI?
I'm with Westpac and waiting on evals on my portfolio to hopefully release equity and go shopping
Im currently on 72% LVR on approx $1.8m but have been using 80% LVR in my calcs.
Interested in going to 90% LVR if it means I can skip on LMI.
What boxes do I need to tick? I'm a systems engineer with 12 years experience on $120k excluding comms and bonuses.
Do they take my wife's income into consideration for LMI?
Chartered member of Engineers Australia? Wife's income can be accepted if she is on the loan.
