Loan for second property

Any general questions you might have in regards to loans and finance.
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Joined: Tue Sep 17, 2019 7:01 pm

Loan for second property

Post by Jason »

I have 85% equity with my wife in our home worth $1.7m. We are looking to purchase an investment property worth $1m with no deposit nor pay LMI. Is it possible for us to borrow for the full purchase price plus costs without paying LMI. What type of interest rate is this likely to incur. Rate on current mortgage is 3.3%. Many thanks

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia

Re: Loan for second property

Post by Otto Dargan »

Hi Jason, welcome to the forum.

Based on what you’ve mentioned so far, yes you can borrow the full purchase price plus costs to complete the purchase without paying Lenders Mortgage Insurance (LMI) fees. Avoiding LMI can save you tens of thousands of dollars.

There are some great interest rates on offer currently, in fact, some of our lenders are offering rates lower than 3% p.a. We can’t exactly give you an interest rate quote without a full assessment but you can check out the special interest rates currently on offer.

In addition, some lenders are also offering $2,000 refinance cashback/ rebates per property.

Since LMI is only applicable when borrowing more than 80% of the property value, you can access up to $1.19 million (80% less your current mortgage balance of $255,000) without paying LMI.

To be clear, you’ll only need enough to cover the 20% deposit to bring the loan to value ratio (LVR) below 80% on the new purchase but having a bigger deposit means you qualify for better interest rates.

The biggest purchasing cost is the stamp duty which you can calculate using our stamp duty calculator here.

We have almost 40 lenders on our panel and award-winning mortgage brokers who are credit experts, so you can rest assured knowing you’re getting the best deal based on your situation.

Give us a call today on 1300 889 743 or fill in our online assessment form to find out if you qualify for these interest rates.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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