RBA Report - the size of the debt you are taking on makes a big - TopicsExpress



          

RBA Report - the size of the debt you are taking on makes a big difference to the risk of falling more than 90 days behind on your mortgage, especially the proportion of the property purchase funded with borrowed money- the loan-to-valuation ratio (LVR). If your loan has an LVR of 90% or more, the likelihood of missing a payment is 3.5x greater than for a loan with an LVR of 60% or less, and almost 2x as great as for loans with LVRs of 80-90%. Thats why banks generally force anyone with an LVR of >80% to take out mortgage insurance – something that can add thousands of dollars to the cost of a loan - but this insurance protects the bank from default, not you!
Posted on: Thu, 08 Jan 2015 03:15:01 +0000

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