PI to IO switch no credit assessment

Discussion in 'Loans & Mortgage Brokers' started by Rolf Latham, 9th Apr, 2020.

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  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Rolf Latham, 9th Apr, 2020
    #1
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  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    And only for 12 months - good for those in trouble, but less so as a strategic tool. But an extra year is better than a kick in the pants as my mum used to say! :D
     
    Jess Peletier, 9th Apr, 2020
    #2
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  3. Citycat88

    Citycat88 Well-Known Member

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    Let's hope this happens. At the moment the banks seem to be making life difficult with renewing existing IO loans.
     
    Citycat88, 9th Apr, 2020
    #3
  4. milobear

    milobear Well-Known Member

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    Probably too early to tell but If you moved from P&I to IO, would you be moving to IO rates? IO are generally higher and given the spread on some, it may still be better off staying P&I.
     
    milobear, 10th Apr, 2020
    #4
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Good point

    CBA and WBC spreads as an example have been shrinking.

    IO repayments will obviously be lower, regardless of the spread, espf if ones loan has say 11 years down on a 30.

    Please seek specific advice
     
    Rolf Latham, 10th Apr, 2020
    #5
  6. Hebro

    Hebro Well-Known Member

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    sounds too much like a jail sentence - which is how some people think of a mortgage, but I never have, to date
     
    Hebro, 10th Apr, 2020
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Well Mort means death in French and the total means until death :)

    of the debt that is

    ta

    rolf
     
    Rolf Latham, 10th Apr, 2020
    #7
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  8. DanW

    DanW Well-Known Member

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    Have any of the lenders gone ahead with this?
     
    DanW, 25th Apr, 2020
    #8
  9. Citycat88

    Citycat88 Well-Known Member

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    BankWest certainly haven't, and are more difficult than before even for simply renewing a 5 year IO term.
     
    Citycat88, 25th Apr, 2020
    #9
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  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    In many cases. most lenders are forced into a new APP due to ASIC regs

    ta
    rolf
     
    Rolf Latham, 26th Apr, 2020
    #10