My five year IO loan with NAB has come to and end and I have received the letters re now moving to P&I as well as the 0.29% markup info (what timing!). They advised that moving to P&I is automatic from the end of the month and the contract remains the same - I don't have to do a thing. However I just contacted NAB about doing another 3 year IO period and they say that I will need to do a new application if I wish to do so. I was hoping it would just be a quick changeover. Is this usual? If I have to do a full application I may as well leave it as is and test the market elsewhere, there is no incentive to stay with NAB, even though the loan has been there for 8 years.