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Extending IO periods

Discussion in 'Property Finance' started by smallbuyer, 23rd Jul, 2015.

  1. smallbuyer

    smallbuyer Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    151
    Location:
    WA
    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
     
    smallbuyer, 23rd Jul, 2015
    #1
  2. Redom

    Redom Finance Strategist - Sydney Business Plus Member

    Joined:
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    1,103
    Location:
    Sydney
    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
     
    Redom, 23rd Jul, 2015
    #2
  3. Rixter

    Rixter Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    572
    Location:
    Portfolio Perth Brisbane Sydney Melbourne
    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.
     
    Rixter, 23rd Jul, 2015
    #3
  4. euro73

    euro73 Well-Known Member Business Member

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    Sydney
    Thats the way to do it. Be proactive. Renegotiate the terms right now.
     
    euro73, 24th Jul, 2015
    #4
  5. poeter

    poeter Active Member

    Joined:
    2nd Jul, 2015
    Posts:
    30
    Location:
    NSW
    If we need to repay, would they force us to sell if we don't have enough to repay the requiring amount?
     
    poeter, 24th Jul, 2015
    #5
  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

    Joined:
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    Location:
    Sydney
    Suncorp, NAB and Macquarie = full application
    St George, CBA, Westpac and RAMS = tick and flick up to 15 years
     
    Shahin_Afarin, 26th Jul, 2015
    #6
  7. jaybean

    jaybean Well-Known Member

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    Location:
    Melbourne
    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.
     
    jaybean, 26th Jul, 2015
    #7