Increasing from 80 to 90 LVR to buy new IP

Hi all,

I have an IP loan with CBA at 80% LVR that I'd like to increase to 90% LVR so I can use the funds to buy a new IP. Is this a relatively straightforward process or are there better and worse ways to do it? I have a small amount of capital growth equity in the property too.

Cheers,

Ben

 

Some of the brokers will be able to give you more detail. But you might be better off going with 88% as there is a fair jump in lmi over that.

 

Relatively straight forward. Just use a new split, don't mix and don't allow the money to make any detours.

 

88% + LMI is effectively 90%. Most lenders won't let you borrow more than this for investment purposes anyway.

The CBA is one of the few remaining lenders that actually will allow cash out (equity release to cash) above 80% without heavy restrictions. They'd want a pre-approval for the next purchase, but this might work in the OPs favor.

Keep in mind that if the loan wasn't previously mortgage insured, LMI will need to be paid on the full amount, not just the increase.

 

Its a straight forward process if you know what you are doing?

Get a broker to assist you as no doubt some other "value add" suggestions will be made assuming they know there stuff