Max Spread Between PI & IO

Discussion in 'Loans & Mortgage Brokers' started by bradleee16, 30th May, 2020.

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  1. bradleee16

    bradleee16 Active Member

    Joined:
    8th Sep, 2019
    Posts:
    43
    Location:
    Sydney
    Hi! Happy weekend!

    I'm curious as to what you would say is the maximum difference you'd accept in rates for an IO loan?

    My properties are cash flow neutral currently on PI loans but I was looking to move to IO to improve cash flow. Do you find this generally improves future borrowing power? The CBA rate differences for me are 1.3% (seems enormous) from PI to IO but I've noticed other lenders are as low as 0.2% difference.

    On a side note -- what's your personal strategy, PI or IO? I've done PI in the past because I felt like I was paying something off and over time it'd be more 'mine' but I'm feeling like I've just been limiting myself (and now have done my debt structure all wrong!).

    Thanks all!
     
  2. Morgs

    Morgs Well-Known Member Business Member

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    Terry_w likes this.
  3. bradleee16

    bradleee16 Active Member

    Joined:
    8th Sep, 2019
    Posts:
    43
    Location:
    Sydney
    Thanks. Yeah I saw their table but for whatever reason my online banking is showing different options, might just have to pop in and ask why mine's like that.
     
    Morgs likes this.
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    15th Aug, 2005
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    Gold Coast
    Relevant puzzle piece(s) missing pls

    Do you have non deductible debt ?

    ta
    rolf