I have an IP with 2 loans against it, $300k used to purchase the IP and $120k which was used for the purchase of a PPOR.
I'm looking to do a third split to purchase another IP and may go to 90% LVR, which will obviously incur LMI costs (looking to cash out about $50k)
I understand the LMI is deductible over 5 years.
I'll then have a 90% lend on IP1 with 3 loans.
Does that affect the deductibility of the LMI - do I need to apportion it because $120k of the $470k total loan was used for a PPOR?
Or is there no issue here because it is the extra $50k loan which incurs the LMI and this is being used for an IP?
thanks
Roosterman
I'm looking to do a third split to purchase another IP and may go to 90% LVR, which will obviously incur LMI costs (looking to cash out about $50k)
I understand the LMI is deductible over 5 years.
I'll then have a 90% lend on IP1 with 3 loans.
Does that affect the deductibility of the LMI - do I need to apportion it because $120k of the $470k total loan was used for a PPOR?
Or is there no issue here because it is the extra $50k loan which incurs the LMI and this is being used for an IP?
thanks
Roosterman