Hi All,
Assuming there was a house which was bought for $10 with a 95% lend from CBA. Say the house value increased to $12 and CBA did a new valuation.
I have been advised by someone at CBA they could lend me the difference up to 95% of the new value. So the existing loan is $9.5. and 95% of $12 would be $11.4 meaning they could lend an extra $1.9 taking the LVR back to 95%.
However I have also been advised if I were to take this option I would need to pay LMI on the full amount of $12 even though I paid LMI on the $10 previously and the new loan would only be for $1.9.
Could someone advise if this advice is correct or I should speak to someone else at CBA?
Thank you.
Assuming there was a house which was bought for $10 with a 95% lend from CBA. Say the house value increased to $12 and CBA did a new valuation.
I have been advised by someone at CBA they could lend me the difference up to 95% of the new value. So the existing loan is $9.5. and 95% of $12 would be $11.4 meaning they could lend an extra $1.9 taking the LVR back to 95%.
However I have also been advised if I were to take this option I would need to pay LMI on the full amount of $12 even though I paid LMI on the $10 previously and the new loan would only be for $1.9.
Could someone advise if this advice is correct or I should speak to someone else at CBA?
Thank you.