change to interest only

Discussion in 'Loans & Mortgage Brokers' started by CraigJ23, 27th Sep, 2021.

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  1. CraigJ23

    CraigJ23 Well-Known Member

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    If you want to change a loan from a principal and interest loan to an interest only loan, will you need to have a new credit assessment? Is it like applying for a new loan? What is the usual process?
     
  2. Terry_w

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

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    Yes, full assessment
     
  3. Lindsay_W

    Lindsay_W Well-Known Member

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  4. CraigJ23

    CraigJ23 Well-Known Member

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    Why do people do IO loans? Is it just a way to get the money without having to initially have big repayments?
     
  5. Terry_w

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

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    several reasons with cash flow as the main one