Refinancing without paying LMI again on 90% LVR Loan??

Hi Guys, long shot here: I'm looking to refinance with another lender to get a better rate. My Investor Loan is currently at 90% LVR. I've had it revalued and seen little to no growth, therefore I will have to pay LMI again if I refinance.
I'm with Macquarie Bank paying 4.75% and want to fix for 3 years and the best they can do is 4.84%.
Is there anyway around this by switching lenders and not paying LMI again having paid it once already?

 

Unless you're a doctor or similar profession, the answer is no.

 

So basically it's pointless refinancing if you loan in 90% LVR?

 

Only if the interest savings outweighs the costs of the LMI - which @ 90% isn't very likely unless you have a very large loan.
It might be worth speaking with a broker for some valuation though as you might be @ 90% with your current bank, but only 85% at another which will see large decrease in the LMI cost and might make it worthwhile.
Hey might be 80% who knows.

 

Generally not much value - this is why you will see many of the long term brokers who post here will stress the importance of using the right lenders from day 1 - if you're using LMI as a tool to extend your portfolio you do not want to be repaying LMI to move to alternative lenders down the track.

There's a bit more flexibility when it comes to 80% LVR's, but events like the APRA changes show that relying on the ability to refinance elsewhere later is not a strategy - so always assume whichever lender you're using that you will stuck there indefinitely.

 

At the time when I had the loan approved in 2014 the rate was very competitive. Not so much anymore, it has been gradually creeping up since, and a fair bit in the last 3 months. I have 2 other similar loans I just fixed for 3 years each at 4.39% and 4.51%. Not sure as to roll the dice and lock in at 4.84% fixed for 3 years, as it will give me job security and piece of mind or play roulette with the banks and stay with my 4.75% variable and see what happens.

 

Or an CPA qualified Accountant - BOQ offer 90% lends with no LMI on certain products, including investor loans.

 

I have thought about that and called some banks. But the general consensus from them is it's probably increased by 30K max so not enough to get to 80%.

 

Just do the figures and see if it could be worthwile.

Don't forget any residual unclaimed LMI could be claimed in one hit if you refinance.

 

Keep in mind the banks probably ran an RP Data report. They all use RP Data, so simply calling various banks to get a valuation opinion isn't going to cast a very wide net.

You need to call a broker who can order a full valuation, rather than a desktop report.

 

This is one the biggest mind shifts that investors make these days. The mentality of "yeah, I'll take that intro rate for 2-3 years and then I'll refinance" is dangerous these days, I reckon.

Yep. Also suggest setting the property up as if for sale. "Sell" the property to the valuer. Be friendly, respectful, make it all look pretty and explain what this valuation is for so when s/he looks at comps, they will (hopefully) gravitate towards higher val (we are all human, after all )