When fixed loan expires

Discussion in 'Loans & Mortgage Brokers' started by ATANG, 26th Sep, 2018.

Join Australia's most dynamic and respected property investment community
Tags:
  1. ATANG

    ATANG Well-Known Member

    Joined:
    5th Jul, 2015
    Posts:
    615
    Location:
    SA
    When a fixed rate loan expires, does it automatically go variable? Or is it considered a refinance with a reassessment? How about when IO expires, does it automatically roll over to P&I or need reassessment?
     
    ATANG, 26th Sep, 2018
    #1
  2. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,891
    Location:
    Australia wide
    Reverts to variable
     
    Terry_w, 26th Sep, 2018
    #2
  3. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,891
    Location:
    Australia wide
    Io reverts to pi.

    This is the usual case however there are reports of some who entered 5 year loan terms instead of 30 years so check your contracts
     
    Terry_w, 26th Sep, 2018
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,629
    Location:
    Gold Coast (Australia Wide)
    Who be the lender and your initial io term pls ?

    Ta
    Rolf
     
    Rolf Latham, 26th Sep, 2018
    #4
  5. jazzsidana

    jazzsidana Well-Known Member

    Joined:
    27th Jan, 2018
    Posts:
    459
    Location:
    Melbourne
    Reverts automatically; however banks normally do send out written letter or email to notify clients..

    Cheers,
     
    jazzsidana, 26th Sep, 2018
    #5
  6. ATANG

    ATANG Well-Known Member

    Joined:
    5th Jul, 2015
    Posts:
    615
    Location:
    SA
    Right... so it wont be like a complete new re-assessment as if you are re-financing...
     
    ATANG, 26th Sep, 2018
    #6
  7. Redom

    Redom Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    4,646
    Location:
    Sydney (Australia Wide)
    No they won't test your servicing, i.e. you won't need to demonstrate affordability/etc under their current lending frameworks.
     
    Redom, 26th Sep, 2018
    #7
    ATANG likes this.
  8. ATANG

    ATANG Well-Known Member

    Joined:
    5th Jul, 2015
    Posts:
    615
    Location:
    SA
    Thanks！
     
    ATANG, 26th Sep, 2018
    #8