LVR on PPOR

[kals]

Hi all
I've currently got a 65% LVR on my home - which includes my own mortgage as well as a LOC for IPs. My current MB didnt want me to go any higher than this however in speaking to another MB he thinks it would be fine to go up to an 80% LVR.
Is there a general rule of thumb on this?
thanks

 

[tess85]

Depends on your own risk profile! I have a 85% LVR on my home, and I make IO repayments, but I'm comfortable with this as it frees up some money for me (to use as deposits on IPs)

No general rule of thumb, really...

 

[josko]

hi kals,

Tess is correct and it does depend on your own risk profile.

Is it that your current MB didn't want you to go higher or were you unable to service the debt at a higher ratio?

Regards JO

 

[kals]

Hi Jo
I think it was that she just didnt want me to go higher. I could definitely service the additional. Anyway im thinking if freeing up more equity will allow me to continue to purchase IPs then i'm all for it!
kals