Extending life of mortgage without new application?

I'm 99.9% sure that the answer is "no way!", but I thought I'd ask anyway to confirm whether there are any loopholes that I'm not aware of.

I've got mortgages with:

• St George
• TMBank
• Bank Australia
• Firstmac (never again!)

All of them were 30 year mortgages, however the oldest ones are now 10 years old and I'm repaying much more principal than I'd like.

Unfortunately, we don't qualify for any new mortgages, so refinancing is out of the question.

Even if the answer is "no" as expected, thanks for reading!

 

I'm not a broker, but like you, I expect the answer is no.

 

I'm not a skater, but I also expect the answer is no.

* Disclaimer, I'm only familiar with policies for 2 of the 4 lenders metioned, but I'm quite certain that resetting to 30 years from 20 currently remaining would require a fully assessed application. There might be something in your circumstances to give them an exception - which would be very unlikely.

 

Loans you mean - you have 20 year terms remaining but want to increase this to 30 years? a new appllication is needed. the mortgage is what secures the loan and will last as long as there is money owing.

 

I know this isn’t allowed with the current lending policies - but this would be a loosening of credit controls that I would like to see.

If you are paying your loans without issues, why shouldn’t you be able to refinance to loans with lower repayments? Surely that is not a irresponsible thing to do?

Regards,

Jason

 

You would think so as it would lower the repayments. But it seems responsible lending involves only lending to people who don't need to borrow.

 

What you're describing extends the loan from 30 years out to 40 years. Increases the amount of interest paid over the life of the loan. Also creates a much greater risk of being in debt when you should be retired.

Responsible lending doesn't take into account that it's an investment property, or that cash flow creates opportunities or any of the (quite reasonable) arguments you might have. It simply caters to the lowest common denominator and assumes that people won't make any good decisions for themselves.

 

The only thing even remotely close to this that I've seen has been the +1 year IO extensions without any assessment which some lenders have under COVID provisions... but that is a no to the original question in either case