Percentage Of Loans On P&I

It's been a while since the pricing difference has opened up between interest-only and P&I loans.

At circa ~0.5% difference, many people have chosen to deleverage by switching a portion of their portfolios to P&I.

What percentage of the value of your total loans (PPOR included) is now on P&I terms?

I'm sitting in the 30s range and looking to move to 40-50%

Bonus question: why?

 

Can you expand on your question ?
If you have 10 loans and 5 are P and I is the answer 50pc?
Or
If your total mortgage payment is say $100k and $50k is principal is the answer 50pc?

 

Sorry, total value, not total number of loans.

eg: If total loans is 1mil and 300k of which is P&I then 30%. Not factoring in number of loans

 

Around 50%

Lower rates and to reduce debt. This was always part of my investment plan.

 

72% on P&I. Soon to increase? Haven't decided yet.
Basically, I've always preferred P&I because I don't like paying more interest than I have to. I like seeing the balance decrease and most of the time the P&I rates have made more sense than not.
I have certainly enjoyed IO for a while. The first time I used it I didn't like it but the 2nd time was wonderful and allowed me a good stretch off work.
While I'm working, P&I fits in with the routine.

 

100%

Did not want to borrow what I couldn’t afford to pay up, for the rates, for the peace of mind, to reduce loan, cz I don’t seem to be able to just hoard it so I need to direct it in a way that I’m not giving what I can’t afford to give away.

 

100% I/O......I luv jumping off cliffs........

 

I find lots of investors blissfully unaware they're paying a premium for IO these days. Not only that but they're paying more than a 0.5% gap to a P&I refinance. Lots of money to be saved if you can handle the cashflow, and hopefully you can because IO rates don't last forever like they used to...

 

I am currently dealing with Suncorp and, for an investment loan fixed for 3 years, their rate is 4.29% whether it is I/O or P&I (if one has paid their package fee).

Makes it hard for me to choose P&I.

Home Loan Interest Rates

 

I luv Suncorp...they are relatively easy to deal with unlike CBA and St George these days.

 

Do you have a lot of 'spare cash' tucked away somewhere, or are they hugely CF+, so when they revert to P&I, you'll still be ok?

 

BOTH $1.6m cash and 120k Cf+

 

Interesting spread. 3yrs ago 80%+ would have gone with the first option.

 

I got a loan with St George. They didn't know where to put the money, so they put it back into the loan. I asked them how to get the money out of the lisn they didn't know. So I asked them some questions, figured it out for them and tokd them what to do. 4 hours later I had my money. The bank drones were nice but not very good at problem solving. Lucky I am very good at problem solving

 

Yep. Adapt and thrive!

 

100%
Why? Because it was refinance on the bank's terms, or sell our PPOR. Moving house didnt appeal, so P&I it is.

 

Poor is PI, IP's are IO.
Will make it 100% PI when the PPOR is paid off.

 

At this point 100%IO as we are stashing cash for our PPOR.
Doesn’t make sense to repay deductible debt, to then draw it out for non-deductible purposes.

Once the PPoR is purchased and paid off. We will direct cash to debt reduction.

Blacky