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Extending IO for Investment Properties

Discussion in 'Property Finance' started by smallbuyer, 2nd Jul, 2015.

  1. smallbuyer

    smallbuyer Well-Known Member

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    Hello,

    Anyone got any info about how have banks been with the recent changes extending IO for Investment Properties?
    What sort of rings to they make you jump through to get this extended IO?
    How far before you IO expiry will they let you expend your IO Period?

    In particular interested in details about NAB, St George, Macquarie, Suncorp & AMP if people have info particular to these.

    Thanks a lot.

    Smallbuyer
     
  2. Redom

    Redom Mortgage Broker Business Member

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    Most of those lenders you'll need to do a full re-assessment to extend your IO terms.

    The problem with this is for investors with large portfolios, servicing will be an issue with those lenders now.

    They were once 'go to' lenders for investors with large portfolios to continue their growth - but now they will no longer service.

    I've posted about this on a SS thread not too long ago (it was prior to the changes taking affect though): http://somersoft.com/forums/showthread.php?t=108515

    Cheers,
    Redom
     
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    NAB/BigMac/Suncorp = 5 years IO max w/ full assessment if you want to extend

    St George/CBA/Westpac/RAMS = 15 Years IO. If you are on a 5 year term you can extend with a simply phone call to the bank or your broker and can extend up to 15 years total.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Till Apra II

    ta

    rolf
     
  5. kr11

    kr11 Well-Known Member

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    are rams still treating ofi debt at actuals, if so, i wonder why they are not as popular with investors.
    also do they have an exposure limit

    thanks
     
  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Im quite certain they add a buffer to OFI debts. They are popular with investors as they do have some really good niches.
     
  7. Big Will

    Big Will Well-Known Member

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    ANZ?
     
  8. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Anz is lupck of the draw

    Typically cub 80 is easish above 80 is. A full app
     
  9. kamchatsky

    kamchatsky Well-Known Member

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    I have 10 year IO approved for my ANZ IP loans last month when ARPA is tightening the screws. Mine is 80% LVR.
     
  10. nth brisbanite

    nth brisbanite Well-Known Member

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    Do you know AMP's policy?
     
  11. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    I had a call from my RAMS broker on Sat... she said servicing was at 7.3 for all debt now, up from 6.8 or so.

    They are offering 4.19% fixed for 1 and 2 years and wanted me to refi all my loans back to them :D
     
  12. nth brisbanite

    nth brisbanite Well-Known Member

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    I've just found that AMP will give a maximum 10 years I/O. All I need to do is send them a letter requesting an additional 5 years after the initial 5 years.
     
  13. Rixter

    Rixter Well-Known Member

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    I just extended some loan IO periods 2 weeks ago for another 5 years. They emailed me IO period extension forms for me to sign and I emailed it back and received a confirmation letter in the mail last week.
     
  14. wombat777

    wombat777 Well-Known Member Premium Member

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    Extending terms was a popular strategy with the Seven Dwarves.

    IO, IO another term we'll go ...
     
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  15. Natedog

    Natedog Well-Known Member

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    Which lender/s were they with?
     
  16. Rixter

    Rixter Well-Known Member

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    Bendigo/Adelaide Bank Homeloans Ltd
     
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