CBA switching fee when IO period expires

:mad: I'm so angry. I've got 7 property loans with CBA. 4 of them were set up 5 years ago. The maximum IO period CBA allow is 5 years. After 5 years, the loan reverts to P&I. No problem CBA told me when I set up the loans as they can be made IO for another 5 year period. Only problem is they omitted telling me about the $300 switching fee that would be charged per loan if I did decide to switch back to IO. That's $1200 for 4 loans!!! :eek: Needless to say, I have no intention of paying that and plan to shift to another bank. Just wondering if other banks do the same thing though. I guess I could just keep moving every 5 years or so if they do but it's a pain. Also, something else I learnt today, CBA only allow you to have a loan IO for a max of 15 years. I plan to hold my properties long term so that just isn't enough. Is that the norm for banks?
 
$300 a loan isn't much. As for the 15 year IO being too short thing, even if you hold for the long term don't you plan on refinancing? If you plan on refinancing every 5 years at least, for example, a longer IO period doesn't matter.
 
I am fairly sure we have not paid such a fee with Westpac when negotiating another IO term.

Why not threaten to take your loans elsewhere and see if they will waive the fees.
 
Hi BF

Different lenders will make you cranky about different things at different times ..........:rolleyes: its a fact of life when u are investing

Ya gotta look beyond the speed humps

ta
rolf
 
banks can always waive fees...So get cranky make a scene and see what they do.

Or take the business elsewhere...Maybe even just two or three.

But sorry to me $1200 for seven properties does not seem like that much compared to the long term benefits..we cant get everything for free but we can try!:rolleyes:
 
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