P&I or I/O for principle place of residence?

Discussion in 'Loans & Mortgage Brokers' started by 2020 Property Investor, 9th Mar, 2020.

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How have you structured your PPR loan?

  1. I/O

    1 vote(s)
    11.1%

  2. P&I

    8 vote(s)
    88.9%
  1. 2020 Property Investor

    2020 Property Investor Active Member

    Joined:
    13th Jan, 2020
    Posts:
    37
    Location:
    Sydney
    Hi all,

    Keen to know your thoughts.

    P&I or I/O for principle place of residence on a buy and hold strategy?

    Pros/cons?
     
    2020 Property Investor, 9th Mar, 2020
    #1
  2. Peter Pakarinen

    Peter Pakarinen Member

    Joined:
    4th Mar, 2020
    Posts:
    23
    Location:
    Kogarah NSW
    The simple reason to go P&I is a rate difference of 0.25%. Unless you believe you can make more money elsewhere paying of your own home should be a number one. Similarly if you are looking to invest i.e. buy another property an I/O reduces how much you can borrow for the next loan. A P&I loan both OO or INV gets you the cheapest and maximum lending.
     
    Peter Pakarinen, 9th Mar, 2020
    #2
    2020 Property Investor likes this.
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,653
    Location:
    Gold Coast (Australia Wide)
    Core q

    will this be your forever home and u move from there in pine box or with jammies and toothbrush, or .......... is there a chance you may make it an IP at some point ?

    ta
    rolf
     
    Rolf Latham, 9th Mar, 2020
    #3
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  4. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,985
    Location:
    Australia wide
    It depends
     
    Terry_w, 9th Mar, 2020
    #4
    Lindsay_W likes this.