Trying to learn how these things work - I'm still setting up for the future, and the following has been suggested:
Let's say that IP3 won't happen until IP1 is LVR 80% or less.
Will Bank 2 require IP3 to be xcol to IP1, or can they stay separated even though they are with the same bank?
One advantage I've been told to keeping in the same bank is that the LMI paid on IP1 can be "reused" for IP3 - so would that mean the (say) $8,000 LMI capitalised into the IP1 loan will simply be taken out of the IP1 loan and capitalised into the IP3 loan (since IP1 is now <80%)?
Thanks!
PPOR - Bank 1 - 80% LVR, IO
IP1 - Bank 2 - 90% LVR with LMI, <$500,000, IO
IP2 - Bank 3 - 90% LVR with LMI, <$500,000, IO
and in the future, to go:IP1 - Bank 2 - 90% LVR with LMI, <$500,000, IO
IP2 - Bank 3 - 90% LVR with LMI, <$500,000, IO
IP3 - Bank 2 (year+ away)
Let's say that IP3 won't happen until IP1 is LVR 80% or less.
Will Bank 2 require IP3 to be xcol to IP1, or can they stay separated even though they are with the same bank?
One advantage I've been told to keeping in the same bank is that the LMI paid on IP1 can be "reused" for IP3 - so would that mean the (say) $8,000 LMI capitalised into the IP1 loan will simply be taken out of the IP1 loan and capitalised into the IP3 loan (since IP1 is now <80%)?
Thanks!