Refinancing/extending IO with St George

Hi,

I currently have an IO INV loan with St George with a family guarantor. I borrowed 100% to purchase an IP in Brisbane. The IO period will expire in 1.5 years. Based on comparables at the moment, it's around 88% LVR. I'm not sure I'd get the growth I need in the next 1.5 years to reach 80% LVR.

What would be the chances of extending or refinancing for another 30 year with St George and keeping the guarantor in place. Refinancing to another bank would require LMI if under 80% LVR which im trying to avoid. Alternatively, I can pay the loan down to reach 80% LVR and then refinance to another bank and remove the guarantor, although I would prefer to use the capital on other opportunities.

 

Hiya

Any particular reason why you wouldn’t want to just allow it to roll into P&I?

I’d at least go with P&I until the LVR is sub 80% before considering a refi.

Cheers

Jamie

 

Hi Jamie,

Would prefer to pay down principle on the PPOR and maximise deductible debt. If I am unable to refi or extend IO, I will roll into P&I.

Just wanted to see if anyone has refi/extend with St George, who has been in a similar situation.

 

You're basing you property value on comparable sales only? Getting a valuation done is the only way to actually know, you might not even need a full val to get the $ figure you need to make the LVR 80% or less.
It's possible to extend/refi IO with St George, you just need to pass their serviceability

 

If you have some spare cash you could debt recycle it to add to teh deposit so you can refi at 80%.

That way you can remove guarantor, pay off OO quickly, refi to IO @ 80% AND have the cashflow to keep paying down OO ASAP.

 

For now yes, I've also had some desktop vals done not too long ago. Will do full val when neccesary.

 

I had two IO investment loans with StG, one had a fully chocked Offset.

When their IO periods expired, StG wanted me to go P&I. I wanted to roll over to another 5 years IO but StG wouldn’t have a bar of it.

I told them I would take my business to another bank. StG wouldn’t budge.

So I refinanced both loans at lower rates, IO and 25 year terms.

Bye, bye StG