Hi All,
I am currently applying for a LOC to ensure funds available for any opportunities which may arise over the next 12 months.
My PPOR is valued by bank at $445k
Loan Balance is $157k
Redraw facility has $69k in it
Salary details for me and wife around $130k
The bank is saying with mortgage insurance they will set-up a limit of just over $200k which surprised me as if you take 90% of PPOR and subtract the loan balance and redraw facility you get around $175k.
Has the bank simply placed more reliance on our salaries in determining servicability as I thought they usually give you the lesser of what you can service by income and what equity is available?
Also, if we choose to pay mortgage insurance to increase the limit available, how is this charged? Do we have to pay it upfront or is it merely "capitalised" somehow?
Thanks!
Zargor
I am currently applying for a LOC to ensure funds available for any opportunities which may arise over the next 12 months.
My PPOR is valued by bank at $445k
Loan Balance is $157k
Redraw facility has $69k in it
Salary details for me and wife around $130k
The bank is saying with mortgage insurance they will set-up a limit of just over $200k which surprised me as if you take 90% of PPOR and subtract the loan balance and redraw facility you get around $175k.
Has the bank simply placed more reliance on our salaries in determining servicability as I thought they usually give you the lesser of what you can service by income and what equity is available?
Also, if we choose to pay mortgage insurance to increase the limit available, how is this charged? Do we have to pay it upfront or is it merely "capitalised" somehow?
Thanks!
Zargor