Increase loan period without new application?

Discussion in 'Loans & Mortgage Brokers' started by spludgey, 24th May, 2019.

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  1. spludgey

    spludgey Well-Known Member

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    I'm pretty sure I know the answer to this one and it's not going to be a yes, but just to make 100% sure, I thought I'd confirm.
    I've got $2.7m of loans and they all came of IO a year or so ago. We've also now got a son, so my wife works two days at most and there's an extra mouth to feed.
    While our networth is increasing (ignoring value fluctuations) our savings have been trending down and we have maybe three years' worth of savings left. Now if we could reset our loans to 30 years, that would certainly take a little bit of pressure off, given that our current principal repayments are somewhere in the region of $50k/year.
    I just don't want to go IO, as that will just make things harder when it expires.

    So I'm guessing this is the answer to my question?

    [​IMG]
     
    Lindsay_W likes this.
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You would need to reapply
     
  3. spludgey

    spludgey Well-Known Member

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    I thought so, thanks.
     
    Terry_w likes this.
  4. AJP

    AJP Well-Known Member

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    Victoria
    Extending the loan term back to 30 years will be a huge feat in itself, there would only be exceptional circumstances where the DCA holder would consider doing this.

    You could try calling up your lender and ask them to review your repayments on the loans to see if you could save some cash flow there.

    Good luck