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Equity release

Discussion in 'Property Finance' started by MJS1034, 10th Oct, 2015.

  1. MJS1034

    MJS1034 Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    113
    Location:
    Sunshine Coast
    Hi guys,

    I purchased an IP few months ago at an LVR of 85% so obviously paying some LMI.

    In 6 months time if my property was valued 30k higher than purchase price am I able to pull that 30k out for another purchase and keep my LVR at 85% without incurring LMI again?

    Or would I have to get the LVR down to 80% before any equity can be realeased?

    My loan is with CBA.

    Hope that makes sense :confused:

    Cheers.
     
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  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    641
    Location:
    Sydney
    You will have LMI credit which you can re-use. CBA would most likely want to control the equity release so you may need to show them a contract of sale for the purchase.

    You need to pay the difference between the LMI paid and the LMI applicable now - the difference would be minimal though and don't forget to not cross securitise your new purchase with the existing property.
     
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  3. monalisa

    monalisa Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    314
    Location:
    Sydney
    Depends on your circumstances, borrowing capacity etc.

    @MsAli and I have purchased properties with LMI capitalised, and been able to top up once values moved.
     
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,141
    Location:
    Canberra and Sydney
    Cash out above 80% is a pain in the a** these days (was never much fun though).

    Cba may consider it - but will want to see proof of what it's going towards (contract of sale for an IP, quotes for renos, whatever). They might also consider if you submit a preapproval app for a purchase at the same time.

    Whatever you do - order an upfront valuation before submitting an application.

    Cheers

    Jamie
     
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