Banks that capitalise LMI @ 95% on investment properties.

Discussion in 'Loans & Mortgage Brokers' started by mattyjh, 12th Feb, 2016.

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  1. Mr Dabolina

    Mr Dabolina Well-Known Member

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    @Steven Ryan - I think @Mick C has answered your question and yes, I went with QBE. PC: 4503
     
    Mr Dabolina, 19th Feb, 2016
    #21
  2. tobe

    tobe Well-Known Member

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    the policy changed last year. historically ANZ would do investment loans for existing customers up to 97%LVR. Now they restrict the LVR to 90% including LMI.
     
    tobe, 19th Feb, 2016
    #22
  3. Steven Ryan

    Steven Ryan Well-Known Member

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    @Mr Dabolina, yep. I spoke with them first thing after this and the loan in question is being switched. Have to say, they're still having some teething issues on their back end. Not surprised given the volume of lending they're suddenly taking on.
     
    Steven Ryan, 19th Feb, 2016
    #23
  4. Mr Dabolina

    Mr Dabolina Well-Known Member

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    Are you saying you had your loan application changed or they are changing their plans?
     
    Mr Dabolina, 19th Feb, 2016
    #24
  5. Steven Ryan

    Steven Ryan Well-Known Member

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    Loan just settled at P&I and is being switch to IO now.
     
    Steven Ryan, 19th Feb, 2016
    #25
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  6. euro73

    euro73 Well-Known Member Business Member

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    It wont be long before Liberty has to take steps to slow down on investor lending...
     
    euro73, 22nd Feb, 2016
    #26
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  7. Mr Dabolina

    Mr Dabolina Well-Known Member

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    Liberty doesn't do construction loans - any brokers come across a 95% lend + construction loan lender (apart from CBA)?
     
    Mr Dabolina, 12th Mar, 2016
    #27
  8. Johann_

    Johann_ Well-Known Member

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    Why would you want to go so high on the LVR?
     
    Johann_, 12th Mar, 2016
    #28
  9. jaybean

    jaybean Well-Known Member

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    Is 88% a general rule of thumb but not always the case or actually the literal sweet spot for 99.9% of banks?
     
    jaybean, 12th Mar, 2016
    #29
  10. Phantom

    Phantom Well-Known Member

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    The benefit of the extra leverage and the cost of having that extra leverage (LMI) is at its most efficient. Past that point, the premium becomes very hefty as the lenders risk increases - generally speaking.
     
    Phantom, 12th Mar, 2016
    #30
  11. tobe

    tobe Well-Known Member

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    Auswide. Me bank for fhb. rams are still doing 95+ for investors as far as I know.
     
    tobe, 12th Mar, 2016
    #31
  12. jaybean

    jaybean Well-Known Member

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    Yes but what I'm asking is, is it exactly 88% with all banks or does it vary like some might be 87%, some 89% etc.
     
    jaybean, 12th Mar, 2016
    #32
  13. Corey Batt

    Corey Batt Well-Known Member

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    88% is always the go - it's the way the LMI premiums increase per cent on the dollar above that point. Different lenders have different agreements changing the specific dollar amounts but the trend is still the same.
     
    Corey Batt, 12th Mar, 2016
    #33
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  14. jaybean

    jaybean Well-Known Member

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    Has it evolved over time as global risk levels changed? Eg during the GFC did that sweet spot drop to 86%
     
    jaybean, 12th Mar, 2016
    #34
  15. Jason Tyrrell

    Jason Tyrrell Well-Known Member

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    Also, some lenders will offer lower rates at below 90% (inc.LMI), or certain products won't be offered at all at over 90% (inc LMI).
     
    Last edited: 14th Mar, 2016
    Jason Tyrrell, 14th Mar, 2016
    #35
  16. Jason Tyrrell

    Jason Tyrrell Well-Known Member

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    On a genworth LMI calculator it can be shown for a $500k property purchase.

    A $430k loan (86%), LMI is $4,472
    A $450k loan (90%), LMI is $7,920

    However, rather than be in between, an 88% loan is only $5,368.

    Add one more dollar ($440,001) and the LMI jumps to $7,260.
     
    Jason Tyrrell, 14th Mar, 2016
    #36
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  17. Speede

    Speede Well-Known Member

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    Any banks still doing 85-88% cash outs?
     
    Speede, 14th Mar, 2016
    #37
  18. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Yes but it's trickier - how much trickier depends on lender.
     
    Jess Peletier, 14th Mar, 2016
    #38
  19. RumpledElf

    RumpledElf Well-Known Member

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    I have to pay $630ish LMI on a 90% lend. Stamp duty is about the same amount :)
     
    RumpledElf, 14th Mar, 2016
    #39
  20. Corey Batt

    Corey Batt Well-Known Member

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    Most are - some have tightened their requirements so you may not just get the funds out no questions asked, others might request evidence that the funds are being used for a purchase etc.

    There have been a couple lenders which have flat out stopped doing cashouts on investment properties or limited the LVR to 80%.
     
    Corey Batt, 14th Mar, 2016
    #40
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