10 years IO loan

Discussion in 'Loans & Mortgage Brokers' started by virgo, 10th May, 2019.

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  1. virgo

    virgo Well-Known Member

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    Hi

    So my NAB 1 year fixed interest in advance loan is up...in the past 4 or 5 years all i need is fill up a form and off it goes...

    This year, NAB informs me i have to do a FULL application...mind you, i am paying them 1 FULL YEAR interest IN ADVANCE!!!

    For a long time, i have sucked it in..esp. with NAB's horrible internet banking interface...

    If i were to do a full application , i might as well cast my eyes elsewhere...and do a full valuation and park some monies in offset ....as property has gone up quite a bit...

    So is there any reasonable big bank doing 10 year interest only loans out there? what is the interest rate like?

    Many thanks!
     
    virgo, 10th May, 2019
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Virgin Money, 10 years IO straight our of the box, and a decent rate - backed by BOQ - yuk :)

    CBA, 5 upfront, and 5 tick and flick in the future theory

    Quite a few mortgage managers will do 10 years out of the box, but arent major lenders

    ta

    rolf
     
    Rolf Latham, 10th May, 2019
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  3. David Shih

    David Shih Mortgage Broker Business Member

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    ANZ do 10 years IO now as well - announced back in March.

    Cheers,
    David
     
    David Shih, 10th May, 2019
    #3
  4. Lacrim

    Lacrim Well-Known Member

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    I need a 30 yr IO loan, followed by 30 yrs to pay off the principle.
     
    Lacrim, 10th May, 2019
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    An evergreen LOC potentially could do this . In theory
     
    Terry_w, 10th May, 2019
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    the first bit of La Crims request maybe, the second probably not :)

    ta

    rolf
     
    Rolf Latham, 10th May, 2019
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  7. Harry30

    Harry30 Well-Known Member

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    Or what about IO on steroids - eg CBA margin loan. They let you capitalise the interest.
     
    Harry30, 10th May, 2019
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  8. virgo

    virgo Well-Known Member

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    Back to the interest only loan application..

    I just realised i have 4 loans which are 1year interest in advance with CBA, WBC and NAB...

    In the past, all 3 banks just flicked me a form to sign and off i go merrily on my way...mind you , i pay them 1 Year 's interest in advance...

    So far NAB has asked for a full application ..and i told them sorry i would rather watch paint dry... Politely of course:)

    Certainly hope i need not have to do a Full application for EACH BANK...then i will truly be Dead !
     
    virgo, 10th May, 2019
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  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    what is the IO period remaining on the loans ?

    ta
    rolf
     
    Rolf Latham, 10th May, 2019
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  10. virgo

    virgo Well-Known Member

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    I assume all will end by 30 June 2019 as they are all interest in advance:(

    I had a look though at the NAB loan and the loan term is not till 30.6.2044..

    Now i am truly confused...
     
    virgo, 10th May, 2019
    #10
  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    that is probably the remaining PI term of 25 years ?

    ta
    rol
     
    Rolf Latham, 11th May, 2019
    #11
  12. Joynz

    Joynz Well-Known Member

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    Just wondering why you elected to have ‘interest in advance’ loans?
     
    Last edited: 11th May, 2019
    Joynz, 11th May, 2019
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  13. virgo

    virgo Well-Known Member

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    I think so...so it means embedded in this PI term of 25 years is a 1 year IO term of 1 year.....
     
    virgo, 11th May, 2019
    #13
  14. virgo

    virgo Well-Known Member

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    ONE WORD only .........."TAX!"
     
    virgo, 11th May, 2019
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  15. Joynz

    Joynz Well-Known Member

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    Would you mind explaining the tax advantages?
     
    Joynz, 11th May, 2019
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  16. virgo

    virgo Well-Known Member

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    One year had very high income; so i pulled in 2 years of interest to reduce tax..as year 2 had lower income....

    And then i started all over again...

    NOT a strategy for some people as once you start, you have to keep rolling it...
     
    virgo, 11th May, 2019
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  17. virgo

    virgo Well-Known Member

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    Funny thing is i have never refinance this NAB loan and the value of property has doubled...so now "forced" to refinance and pull extra equity out....

    Maybe NAB wants me to have that BMW Plus a well rested holiday:eek:..you think?

    Haha ...this is quite Hysterical to me:D
     
    virgo, 11th May, 2019
    #17
  18. virgo

    virgo Well-Known Member

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    Ah...just heard back from CBA that income assessment needed only for some cases ...apparently my file says no need...so yes, i can merrily sign some form and get another 1 year in advance..Phew!

    Now to present this case to the ***** at NAB...who insists i get a full application and get more equity out!
     
    virgo, 11th May, 2019
    #18
  19. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    NAB are well known for their inflexibility!
     
    Terry_w, 11th May, 2019
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  20. Lacrim

    Lacrim Well-Known Member

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    I thought CBA's tick and flick one form process for IO extensions was history??
     
    Lacrim, 11th May, 2019
    #20
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