Banks that capitalise LMI @ 95% on investment properties.

I'm currently looking to finance an investment property @90-95% LVR. Just wondering what banks will capitalise LMI for investment properties?

 

CBA will, up to 95%. Some of the smaller ones will too - BoQ springs to mind but only if you're willing to wait 5 weeks for assessment.

 

Hi Jess,

CBA told me they only go up to 90%. I'm actually thinking i might go to 95% so I'll check BoQ out.

Thanks

 

@mattyjh, CBA will go up to 95% (including LMI) but they have some postcodes they won't go above 90% + LMI on.

Liberty will do 95% + LMI but must be P&I if investment.

 

Your LMI costs will be enormous though. They go up expodentially as you increase LVR.

 

ME bank and Banwest too I think go to 95%.
ANZ for existing customers

 

The person you spoke to is wrong. Check CBA before BoQ, they're much better for investors and if you're paying that kind of LMI you'll want to choose wisely.

 

Indeed they do - 88% is the sweet spot before things get out of control.

And a high LVR means being bound to the same lender for longer (or potentially paying LMI again elsewhere), no top ups for a while etc.

However, it can make sense in some cases e.g. enter market sooner, to preserve a larger buffer, to retain cash to add value, to allow a subsequent purchase etc. On lower-priced properties the dollar amount of LMI isn't as ludicrous either.

 

Keep in mind that you need to demonstrate 10% gen savings with CBA and no neg gearing allowed on servicing calc when borrowing 90% +

Cheers

Jamie

 

Lots of lenders that will do it in theory but chuck in credit scoring and DUA and it suddenly becomes a little tricky.

 

Yes, to the point where you're really only borrowing about 1.5% more with the CBA than you would on a 90% + LMI loan. At this point you pay higher rates with the CBA as well.

To put it in perspective, the difference between the two scenarios on a $600k property is coming up with another $9k out of your pocket.

 

Not a bank but Qantas Credit Union will do up to 95% + LMI according to the website

Am in a similar position as originally posted, anyone have thoughts on QCU?

Thanks

 

Are ANZ doing 95% again? I had two IP I/O loans approved in Nov/Dec 2015 for a max of 88%...

 

I got Liberty 5Y IO on 95$+LMI

 

Rate?

 

bit higher than stnd @4.99

 

That's interesting @Mr Dabolina. I'm assuming it was the Liberty Star product? What was the postcode?

I had a 95%+ LMI IO IP loan pushed back, being told that all IP loans had to be P&I at 95%+ LMI. I questioned the policy as it seemed to contradict the Star product but was told the same thing by multiple folks on their end.

 

Liberty uses 2 LMI funders, QBE and Genworth + their own "risk fee ( in liu of LMI)...if you dont state which LMI/risk fee your using than they will use their standard policy of 95% + LMI @ P/I .

However if you tell them you want the QBE one or risk fee one, it's I/O

Existing customers only of ANZ-can go to 95%.
New customer 90% Max.

But 88% is the "sweet spot in term of LMI cost" and credit scoring.

 

ANZ only do 90% max for investors, regardless of how long they have been a customer.

they haven't updated their back end properly, the LMI calculator still shows 97%, but its definitely their current policy.

 

So basically the policy hasn't changed.