Extend interest only period

Discussion in 'Loans & Mortgage Brokers' started by melbourne171, 11th Mar, 2020.

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  1. melbourne171

    melbourne171 Well-Known Member

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    I have two loans with CBA and just requested for another 5-year interest-only period extension. However, 1 loan is offered 5-year interest-only extension without re-assessment (no further documents required) but for another loan, they require re-assessment / resubmission of a full application to switch into an interest-only loan.

    Do you know what basis for CBA requires full reassessment or not?
     
    melbourne171, 11th Mar, 2020
    #1
  2. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

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    Weird. Normally these days it's a full application.
     
    Jess Peletier, 11th Mar, 2020
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  3. Lindsay_W

    Lindsay_W Well-Known Member

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    Extension of Interest Only periods usually trigger full assessment.
    I'm wondering if there's a misunderstanding here, if they're doing the full re-assessment on one loan it most likely includes the other loan in that assessment?
     
    Lindsay_W, 11th Mar, 2020
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  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    the one that needs the full review is either an IP loan with 10 years IO served, or a HOME loan with 5 years

    Guessing ?

    ta
    rolf
     
    Rolf Latham, 11th Mar, 2020
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  5. melbourne171

    melbourne171 Well-Known Member

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    My misreading the letters. All have to be reassessed.
     
    melbourne171, 11th Mar, 2020
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    that being the case, may be worth your while to have a look around at lending options.

    Are your loans under 80 % LVR ?

    ta
    rolf
     
    Rolf Latham, 12th Mar, 2020
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  7. melbourne171

    melbourne171 Well-Known Member

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    Just a curious question
    If I submit an application for reverting an existing loan into an interest-only loan and the lender find serviceability issue based on their criteria, then what will they do?
    Is there any chance that the lender forces me to sell the property or withdraw the loan?
    Note that I am still comfortable to repay the loan. Just want to have better cash flow by interest only payment .
     
    melbourne171, 17th Mar, 2020
    #7
  8. Lindsay_W

    Lindsay_W Well-Known Member

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    No - they just won't allow you to refinance it back to an interest only loan, that's all.
     
    Lindsay_W, 17th Mar, 2020
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