How are people finding extending IO periods for investment properties. How are people going getting extensions in this next lending enviroment? How far in advance of expiry of IO have people got their extensions? Im concerned they may move the goal posts even more before they actually expire. I know some (eg suncorp after 10 yrs ), want you to do calculators, provide financials etc. With the ones that ask for a lot of information can they decide to change your existing facility, get you to repay some/all of your loan perhaps, if they decide they don't like something. Do they do a credit check (which can be bad for getting new loans if you have to many) when you apply for an IO extension. In particularly interested in Suncorp, AMP, St George, NAB, Macquarie so any info on these would be great. Cheers, Smallbuyer
Most of those lenders they'll need to do a full reassessment of your income/expenses. This could get tricky as the servicing calculators have completely changed and could mean your 'assessed' expenses now exceed your income. Of late i've had a few call their bank direct with CBA and have them auto extended. I think its a prudent move to extend it out as far as possible right now. Cheers, Redom
I've just extended my I/O periods on a few loans. They sent me a letter stating my IO period was about to roll over to P&I if they didnt hear back from me by a set date. I contacted them, fill out the relevant form for each loan and sent it back. About a week later I received a confirmation letter stating the loans I/O periods have been extended for further 5 years. Loans with Bendgo Adelaide Homeloans Ltd.
If we need to repay, would they force us to sell if we don't have enough to repay the requiring amount?
Suncorp, NAB and Macquarie = full application St George, CBA, Westpac and RAMS = tick and flick up to 15 years
This is what I'm concerned about too. So I've decided to renew one of my IO loans even though it doesn't expire for another year. I may end up getting burned if I try to be too greedy and wait until the full 5 year term expires. Better to take what you can get while the sun is still shining. Hell, even if I was only 3 years into the term I think I would still extend given all the craziness going on right now, better to be safe than sorry.