How high LVR would you go on PPoR?

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??

 

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

 

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..

 

As I mentioned, those 2 lenders will loan up to 85% with no mortgage insurance. That 5% makes a big difference

 

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

MJK