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How high LVR would you go on PPoR?

Discussion in 'Real Estate' started by bazza52, 30th Aug, 2007.

  1. bazza52

    bazza52 Member

    Joined:
    4th Dec, 2006
    Posts:
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    Location:
    Canberra
    I am refinancing my PPoR soon, and will most likely do so at 85% (with no LMI thru Westpac or ING).

    Using the funds I will be paying off some family debt, and purchasing an IP at 95%.

    Since I am not sure my PPoR will be valued by the bank at what I need, is it silly to even consider going higher LVR? This would increase the risk, the interest rate and also add approx 2% LMI. It would however allow purchasing an IP sooner and not missing out on capital growth??
     
  2. MJK

    MJK Well-Known Member

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    17th Aug, 2005
    Posts:
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    80%. No mortgage insurance at this level. Not a target for litigation because the Bank gets the money before the litigant if you happened to be sued.

    MJK
     
  3. DaveA

    DaveA Well-Known Member

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    19th Feb, 2007
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    Location:
    Sydney, NSW
    i do wonder in this circumstance, if u are refinancing a PPOR soley to provide funds for investment and LMI is incured because of the refinance, would the whole amount be tax deductable, or maybe a portion or it..

    i guess it might be simplier to just do a LOC and have the 2 seperate loans, but id love to here peopls opinions on this..
     
  4. bazza52

    bazza52 Member

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    4th Dec, 2006
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    Location:
    Canberra
    As I mentioned, those 2 lenders will loan up to 85% with no mortgage insurance. That 5% makes a big difference :)
     
  5. MJK

    MJK Well-Known Member

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    Oops! Sorry Dave...I have no personal debt so I assume all is tax deductable.:eek:

    MJK