lenders mortgage insurance

[TGIF]

Hi,

I'm thinking of buying a second IP and have read that taking LMI will result in having more equity in the future to buy a third IP.

I know LMI is tax deductible, I think over a 5 year period.

Any advice will be much appreciated; do you take out LMI on your IP's?


TGIF

 

[buzzlightyear]

Yes, but it depends

A search on LMI will give you plenty of threads where this and related issues are discussed; Here's a couple for starters....

http://www.somersoft.com/forums/showthread.php?t=51575&highlight=LMI

http://www.somersoft.com/forums/showthread.php?t=50885&highlight=LMI

 

[Rolf Latham]

LMI is depreciable over 5 years ior the term of the loan if less than 4 years.

many people like it not just for the obviouc extra leverage, but it can also leave some emergency money in the kitty.

The LMI providers are getting very fussy though and youd need to fit into their box

ta
rolf

 

[TGIF]

thanks for the advice

thanks for the advice

 

[Jamie M]

The LMI providers are getting very fussy though and youd need to fit into their box
ta
rolf

Interesting....how do you fit into their box? For my next purchase, I'm looking at buying something dearer than the other IP's I've purchased (around the $400k mark) and will be looking for a 95% LVR. Would I fit into the LMI providers box? Would I be able to find a 95% LVR loan in the current climate?

Cheers

 

[Rolf Latham]

Hiya Mortza

I dont know if you are a round or a triangular peg

Seriously, there may be an option for a 95 % lend, depending on a pile of things.

There arent many lenders that will do them for a start.

The LMI providers look for many things such as

genuine savings
Property qualilty locn and type
ur resi stability
ur job stability
how much other finance have u have applied for in recent times
What blood group u are

ta
rolf