What way would you structure ?

Discussion in 'Loans & Mortgage Brokers' started by Tim.b, 16th Oct, 2018.

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  1. Tim.b

    Tim.b New Member

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    Hi
    We Recently turned our OO into IP .
    looking to refinance it to IO as its currently Principal and equity release for anther property ,
    We have found another property we wish to purchase and do reno straight up ( living with family currently ) property is undervalued because of condition and will have some nice equity after reno based on area research .
    Current refinance on IP at 80% will not give us the cash needed to do reno on new property if it's purchased at 80% LVR , are 95-98% LVR still available on OO ? this would give us the cash to do reno and have the place re valued after the reno to bring back to an 80% LVR .

    That's what I am planning any other suggestions would be welcomed

    cheers
     
    Tim.b, 16th Oct, 2018
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    PPOR loans to 98 % are doable, but tough on servicing and damn expensive on premiums, especially on loans > 500 k

    What is your perecived benefit of revaluing to 80 % after reno ?


    ta

    rolf
     
    Rolf Latham, 16th Oct, 2018
    #2
  3. Terry_w

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

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    consider how you could structure the loans to maximise deductibility of LMI.
     
    Terry_w, 16th Oct, 2018
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  4. Tim.b

    Tim.b New Member

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    Serviceability at 98% will be ok , buy in will be about 350k with 50k ( from IP refinance ) reno . Should be worth around 500k+ quite easily .

    I guess no real benefit but peace of mind for risk mitigation being on the lower end on combined income , ideally LVR would be better than 80% to allow a further equity release for another IP
     
    Tim.b, 16th Oct, 2018
    #4
  5. Tim.b

    Tim.b New Member

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    As in 88% on one and 90% on the other ect .
    I thought lenders weren't doing over 80% IO on IPs ? my broker seems to be pushing for 80% on IP and 95- 98 % on New PPOR
    guess was my question to see what you guys thought
    cheers
     
    Tim.b, 16th Oct, 2018
    #5
  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Might be wise to ask the broker, since they have all your details and future goals and have probably mapped out how you are going to achieve your financial goals.

    As a generality I wouldnt take a punt on a 98 if I can spread the risk over 2 similar cost LMI premiums at 88 + capped lmi

    ta
    rolf
     
    Rolf Latham, 16th Oct, 2018
    #6
    Terry_w likes this.
  7. Tim.b

    Tim.b New Member

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    Thanks for the insight , replies appreciated

    is anyone else having problems with CBA taking forever to pick up an app / make a decision ?
     
    Tim.b, 18th Oct, 2018
    #7
  8. Phantom

    Phantom Well-Known Member

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    This has been the case for a many months now. It was taking 12 days to pick up a file not long ago. Current pick up time is about 6 days.
     
    Phantom, 18th Oct, 2018
    #8
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