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LMI on investment loan - CBA

Discussion in 'Property Finance' started by Christina46, 17th May, 2016.

  1. Christina46

    Christina46 Member

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    When all of the APRA changes came in last year, we had just started discussions with our mortgage broker to make some changes to our borrowings. We were wanting to take advantage and increase in our investment property value increase the loan limit. This would have been taking it to an LVR over 80%, but as we have already paid LMI, we wouldn't have been up for any more. At the time, we were told that CBA weren't doing any investment loans over 80%, but their website now seems to indicate that they will?

    Can any of the brokers out there let me know whether investment loans over 80% are still an option for CBA?
     
  2. Redom

    Redom Mortgage Broker Business Member

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    Yes definitely an option. I'm pretty sure CBA never restricted investment loans below 80% and didn't actually change the LVR's too much on Investment Loans, even during the APRA changes. Westpac/St George are the main majors that did that (along with minor tinkering from NAB/ANZ).

    It however, can be more difficult to release above 80% though if the file is weak and there isn't evidence of why you need the funds. These can sometimes be tricky, so your broker may have been alluding to this point, rather than a general observation of CBA investment loan LVRs.

    Yes there will be a re-credit of LMI - a relatively small adjustment fee will be payable and any additional LMI cost that your up for.
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    CBA never imposed a sub 80% restriction on IP lending.

    Cheers

    Jamie
     
  4. Christina46

    Christina46 Member

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    Thanks for the prompt replies Jamie and Redom.
     
  5. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    CBA are also still doing cash out over 80%, so you'll be able to reuse that LMI you paid. There are a few restrictions, but if everything stacks up you should be fine.
     
  6. Christina46

    Christina46 Member

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    Thanks Jess.