LVR and the next deposit

Trying to understand the implications of a higher LVR. I understand how a higher LVR can be beneficial for your tax bill, but how does it affect the deposit for the next property?

If I have a 500k property, borrow 88% against it. 440k loan.

If the property grows 10% to 550k with a 440k loan. Then I'm left with 110k.
Will the banks let me draw out:
a) 80% of the 110k (88k), increasing debt to 528k
b) 88% of the 110k (96k), increasing debt to 536k
c) more than 88% if I ask for it? Are there extra LMI costs if I already paid LMI previously?
d) my calculations are wrong

If there was a long period of stagnation in house prices, wouldn't the person with a 80% borrow vs 88% borrow be in a better position to borrow again, given they can now have an additional 8% to work with (tax deductible too).

 

Above 80% there are two sets of eyes, and two sets of policies looking at your deal. Below 80 is therefore easier. Like Rolf mentioned sometimes it can be harder refinancing a sub 80 deal to over 80 because their isn't an existing lmi policy for that deal. To lmi it's a whole new deal, even if it's with the same lender.
regardless of the period of stagnation, the numbers are the same, in the 80 scenario you got the extra deposit somewhere else, at the end of the day both scenarios paid the same amount of lmi and had the same outcome give or take a small tax break. Practically it's easier starting as you mean to finish. It's a better return on equity (less deposit) and your extra deposit funds are better off setting up a buffer, paying off non deductible debt or deposit on another investment.