Hi, My wife and I have all of our investment loans (6 loans) at principal and interest and I’m thinking of trying to convert them all to interest only. I believe this will give us a bit of a boost with cash flow I’m just wondering if we do that with these new lending rules, would it have a negative impact on future borrowings or does it still depend on other factors? Thanks
Conversion to IO with most lenders needs full app x 6 if u service and values ok, it will work 5 years IO means any new loans with APRA lenders, means existing loans assessed at 25 years, so will reduce borrow cap by a bit Non apra lenders, typically IO is better for future borrow cap ta rolf
