Our bank informed us that we cannot change our loan payment from P + I to IO. The reason they gave us is our LVR is 85% and there is no LMI on this loan. When we were in process of applying for this loan, they informed us we can change it to IO anytime. We don't think this is fair. They cannot just turn back on what they told us. Can anyone please advise us what we can do?
Bank won't allow us to change loan payment to IO
- Thread starter komstak
- Start date
Hiya
If you have evidence of the conversation you might have a shot.
Sounds like either ING or more likely WBC.
In general, where a loan is approved at PI its not that simple to flick it to IO.
It can usually be done the other way.
Many lenders look at IO as being a credit critical, hence the new app requirement, and now youd need to pay LMI on the 85 % lend
Almost always we insist on our clients to take IO if its available for this and other reasons
ta
rolf
If you have evidence of the conversation you might have a shot.
Sounds like either ING or more likely WBC.
In general, where a loan is approved at PI its not that simple to flick it to IO.
It can usually be done the other way.
Many lenders look at IO as being a credit critical, hence the new app requirement, and now youd need to pay LMI on the 85 % lend
Almost always we insist on our clients to take IO if its available for this and other reasons
ta
rolf
What does it state on the loan contract you signed, and what other amendments have they sent you since?
The Y-man
Hi komstak,
It's possible that they have re-valued your property. If the property has dropped in value since you first obtained the loan, your LVR would have increased.
Did you take out an 80% LVR to begin with?
If not, and you have nothing in writing then your only option would be to bring the LVR down to 80%.
Regards JO
It's possible that they have re-valued your property. If the property has dropped in value since you first obtained the loan, your LVR would have increased.
Did you take out an 80% LVR to begin with?
If not, and you have nothing in writing then your only option would be to bring the LVR down to 80%.
Regards JO
