Equity release

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

Cheers.

 

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.

 

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.

 

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