Refinance when you are closer to retirement

Discussion in 'Loans & Mortgage Brokers' started by virgo, 20th May, 2020.

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  1. virgo

    virgo Well-Known Member

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    Hi

    I have 2 loans with CBA...

    One of the loans with CBA has changed from Interest Only to P&I...CBA mumbled something about i have run out of my 5 years interest only option.

    I am keen to lock in these 2 loans into interest only (maybe with another bank eg ANZ ) for the next 25/30 years to manage my cash flow as we are closer to retirement.

    Thought i should do it when hubby is still having his work income.

    Anyone has done the same? Any thoughts on this strategy?

    thanks!
     
    virgo, 20th May, 2020
    #1
  2. MTR

    MTR Well-Known Member

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    I am in retirement and managed to do this with 2 loans, used resimac

    those P&I loans are a cashflow killer
     
    MTR, 20th May, 2020
    #2
  3. Terry_w

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

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    Its a very important strategy as generally once a person gives up work they will never be able to borrow again so extending loans now can result in improved cashflow in prep for retirement.
     
    Terry_w, 20th May, 2020
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  4. Jess Peletier

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

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    Definitely prepare your loans and change them to IO before you kick back and retire - as Terry says, if you're retired, it's much more difficult to change anything around.

    As long as you have income and an exit strategy, many lenders are fine with new IO terms on investment properties, regardless of age.
     
    Jess Peletier, 20th May, 2020
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  5. Terry_w

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

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    You might even borrow some extra and set yourself up for capitalising interest - or use this as a buffer only if needed.
     
    Terry_w, 20th May, 2020
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