Expiring Interest Only Loan

I'm interested to know if a revaluation is required if you want to extend an Interest only loan ... assuming you stay with the existing bank.

Thanks

 

generally not

 

Which lender?

 

Which lender are you with as they all have different quirks?

 

Westpac, ANZ & CBA can all extend interest only terms without a further valuation or full reassessment of the loan, but there are restrictions on this and there will be circumstances where a valuation and even a new application are required.

Most other lenders require a new application and a valuation is usually part of that. The NAB definitely falls into this category.

 

Depends on the lender as mentioned above.

For those with multiple properties - the days of ongoing IO periods will likely becoming to an end due to serviceability constraints.

Cheers

Jamie

 

The seven dwarves will be very disappointed. They hated principal payments.

IO, IO ...

 

Mine is expiring too. Made an appointment with a local banker. I'm with ANZ.

Hope it's easy and straightforward... and 'fee-less'

 

Will be a reassessment with ANZ.

 

If the original loan was written under 80% and it meets a couple of other rules, it's deemed 'non critical' and can be rolled over without a new app.

 

Yep and with NAB changing their policy next week, it is only going to get tougher...

Glad my IO period is locked away until 2028. Got to love the old St George 15 year IO loans.

 

Depends on how they feel on the day!

No - I'm sure there's some method to their madness - I'm yet to work it out though. A sub 80% LVR as Tobe mentioned helps.

Cheers

Jamie

 

There are some parameters around it, but they can do up to 10 years total without a reassessment.

 

Maybe the seven dwarfs are singing "I Owe, I Owe". Maybe cause they had too many interest only loans

 

When you look at what happened in Perth a few days ago at the AGM,maybe it's a bit more then interest only loans..
Shareholder revolt sinks CBA executive pay plan

 

Lenders look at IO renewals in one of two ways:

1. Full assessment for Rollover

• Require either a full refinance of existing debt to new 30 year term with IO period, OR assessment of existing financial situation to ensure it still services
• Valuation may be required, dependent on each lenders policies (some will require a new val, others will rely on older valuations or a computer valuation)

2. Tick and Flick

• No assessment required
• Generally can either roll it over either one or two 5 year periods before requiring a new assessment/refinance to new 30 year term with 5-10 years IO

Most lenders fit into one category or the other, some use both depending on the loans parameters (LVR, how many years remaining etc)

There has been a number of lenders who previously looked at it as a tick and flick form, but now during the APRA changes require full assessment.

 

I have had 3 ANZ IO loans(3 years) mature recently. 2 at 80% no issues at all to extend another 3 years,one at 90% in LMI territory, no show at extending at all, made it go P & I, i could get around this on a re val, and hope the property has increased.

 

Even if the value has increased they still won't tick and flick the rollover. To be eligible for the 'easy' rollover it has to have been an 80% lend originally.
It doesn't matter what the lvr is now, as the loan was written with LMI they want to keep to the loan terms as approved by lmi.

 

): Bugga