Max Spread Between PI & IO

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!

 

It shouldn't be that wide a gap.... even with CBA.. as an example
- Their INV IO SVR is only 0.26% difference to P&I
- 2 year fixed INV IO package 2.89% vs. 2.69% P&I (0.20%)

Home loan interest rates, mortgage rates - CommBank

 

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.