LMI payable on LOE increase

Discussion in 'Loans & Mortgage Brokers' started by one80, 2nd Nov, 2017.

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  1. one80

    one80 Member

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    Hopefully a very quick an easy question for your finance guru's...

    We have an existing loan and LOE - the total of which is under 80%.
    We haven't ever paid LMI on this loan.

    If we increase the LOE to a total >80% do we pay LMI on the extra over only?
     
    one80, 2nd Nov, 2017
    #1
  2. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    LMI will be payable on the full loan.
     
    Property Twins, 2nd Nov, 2017
    #2
    jim1964 and Jess Peletier like this.
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    If you borrow above 80% you'll be paying LMI

    Ask your broker/lenders for an estimate cost.

    Cheers

    Jamie
     
    Jamie Moore, 2nd Nov, 2017
    #3
  4. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    @one80
    Have you considered valuation shopping to see if you get better val with another lender? May mean you are able to access more funds and not go beyond 80% (obviously depending on how much you are after).
     
    Property Twins, 2nd Nov, 2017
    #4
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    What is an LOE?
     
    Terry_w, 2nd Nov, 2017
    #5
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