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Looking for a 85% LVR I/O investment loan with LMI waived? Are they available for NON PROFESSIONALS?
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Hi Leanne great question. There are two ways to approach this. I am making an assumption that you are looking to finance your property & you don't want to have to pay the LMI or don't have funds to pay the LMI. The first option you can take advantage of is capping the LMI into the loan amount which means that whilst you don't have to pay the LMI upfront you do pay it off in the monthly repayment of the loan. The second option is taking advantage of a couple of lenders that are offering no LMI up to 85%. These loans are for NON PROFESSIONALS as your question mentions however the product options are very limited i.e no offset/ principal & interest payments. Which means that if you are just looking for a competitive rare & paying the loan off these are good options. I hope this helps & please feel free to contact me offline to discuss further.
Hi Leanne,
To my knowledge, there is only one loan that fits your description i.e. Non Professional Investment loan, 85% NO LMI and Interest only. The variable rate depends on loan amount, but for interest only, rates start in the low-mid 5's and comes with annual fee of $350
You may want to weigh up whether paying LMI is actually beneficial in the long run. If you're loan is greater than $250,000 and LVR is sub 90% you may be able to find considerable savings on rate and fees, which should translate into a considerable reduction in out of pocket expense.
Have a great weekend,
Gerry Ardesi
I currently have one prduct foe non-professionals with no LMI up to 85% LVR and maximum loan amount $850,000.
A couple of lenders have been providing no LMI to 85% - I will check if the latest changes this remains. The other part of lending is servicing so both need to be considered to find a suitable loan.
Yes their are a few funders that prohide this service
Please be mindful that you will need a good history and no adverse on uour veda report
