Brokers- Finance PPOR using IP equity

We're looking to get a PPOR in Sydney to 600k and am looking for the best option for our situation.

We have IP in WA, 373k owing, 470k valuation in Sept 09 with ANZ.

We want to outlay as little cash as possible and utilise as much equity as we can, we also want to switch over the IP loan to interest only at the same time. We have fairly good cash flow.

What's the best approach?


not easy, but perhaps possible

Assume 470val holds, max lend with anz = 90 % so they would provide another 50 k minus costs

set the 600 k PPOR up as a 95 % lend

youd need 30 k deposit from the 50

youd need 23 k for gov costs

Possibly around 17 k for lmi

at this point it looks like youd need 20 k from other sources

BUT, dependong on what lender you have other dealings with, and some other fiddlings it may be possible to

1. Add the LMI to the loan
2. or increase the refinance LVR a little

Thanks. We don't have any other debt and no relationships with other lenders.

Does the LMI drop dramatically @ 90%?
I'm a lot more comfortable with < 10k LMI...
it does come down a lot

If you can find around 80 k ( 50 from the ANZ side and 20 to 30 from ??) the lmi would oftwn be less than 10 k on a 540 k lend on a 600 k purchase, and u may be able to add it to the loan depending on the lender