Refinance query

This sound correct?

My lender is telling me I need to wait until my fixed rate expires on one of my loans before I can extend the IO period - if I request the IO period be extended now, it’s deemed a refi and triggers a break in the (v favourable) fixed rate deal.

I am not extending the loan maturity, nor am I asking for more than 5 years total IO (it’s a 2 year extension to the existing IO period).

..For background, I am refinancing a couple of other loans which are coming up for fixed rate and IO maturity sooner than this third one. The issue is not wanting to go back through another underwrite, living expenses review etc in 6 months time when I was hoping to knock it all over now. I note the lender’s interest rates are pretty good in relative terms to what’s currently available, so am happy to stick with them for the time being.

 

Yes sounds correct

 

Yes correct..thats becsuse it will most likely be reassessed to extend IO eg a whole new app.

Maybe you can ask them to get it approved and settle on the new app once the fixed rste expires.

 

Going from 3yrs @ 2.34% to 6.6% (IO var)

 

Yep - new app if you want to extend the IO term of the loan. As a new servicing position is required then properties and their values reassessed. The issue, by trying to extend the IO period the P&I period is reduced, hence the new assessment on servicing .