Cost to refinance ?

You will pay LMI, but you will also get a credit for the LMI you've already paid. Effectively you just pay LMI on the increase. It would probably only be a few hundred dollars.

Practically it's extremely difficult to get an equity release above 90% these days. Actually getting more than 80% can be tricky...

 

If you bought at 95% there's another large cost to refi that hasn't been mentioned - you'll need to pay LMI again with the new lender. For that loan, you're probably best to try and negotiate a better rate with the existing lender, unless you have equity in another property you can use to lower the LVR.

 

Thank you, good to know !

 

As others said, most brokers don't charge as we're paid by the banks

Might be a challenge to go above 90% but first step is to get a valuation done with the lender. You may be able to "top up" to less than 90% and still release what you need for the repair. Certainly beats paying for it with after-tax dollars.

 

sounds to me like I'm better of choosing the IP with the most equity and getting an equity release on that for the repair - if the purpose of the loan increase is repairs for another IP property and not the loan increase one, is the interest is still tax deductible ? - sorry might be a silly question

 

I split 3 loans across 2 lenders and it worked out great for me. Lender 1 asked what rate Lender 2 was giving me and then lowered there rate to just under the competition. I ended up with low rates on all the loans

 

So what you need is internal refinance or loan increase, you can still use previously paid LMI.( hence, you don't need to pay LMI again).

Call your bank/broker and ask them.

 

you may ask for price and get some discount, since the loan amount increase.

 

So if you want to change anything or renegotiate with one do they take into account whats happening with your loans with other lenders ? just wondering if it reduces flexibility in any way

 

I

refuse to call my bank they are utterly hopeless - it takes me an hour to find someone who even knows what I'm talking about and then they just say fill out an application and we will see

 

I think sometimes I don't understand why the bank making the whole loan application process difficult.

Maybe what's why the whole broker industry exist

I have a client asking discount for his existing home loan by himself, no sucesss...
When the refinance (discharge) document hit on the retention team's desk, everything change, discount, first annual fee waive....

 

^^^ this. I did the same and filled out the mortgage discharge document. Call from the retentions team, what can we do for you? Cancelled the discharge, discounted rate, happy days!

 

Anyone purely rate driven, rather than debt structure/consolidation/cash out/top up/ equity release/ purpose.
Simply call the bank to ask for more discount on their loan.

Once one engaged a broker, then one should ignore the bank retention team's call/email...etc..
Because it's the broker negotiated the discount for you not the banks initiative/incentive.

Personally, I think banks have less incentive to look after existing clients, whereas, a broker has more incentive to ensure existing client get properly served. simply because brokers get pay when doing a good job, but employee of a bank get bank every second week regardless client happy or not.

Just my personal opinion. I may be bias since I am also a broker. but at least this is what I feel so.