Thanks for the post Redom. Just for everyone's benefit, I'm caught up in this right now. The reasons:
- A reduction in base salaried income as I transition across to a remuneration structure with more incentive and greater upside but less base.
- Changes in credit policies from days of yore
So a lot of my IO loans are transitioning across to P&I and there's not a lot I can do about it despite falling IRs, or if there is it comes with strings attached like higher IRs or greater concentration risk with existing lenders etc which I try to avoid for other reasons. Or maybe it's just my broker!
Not a biggie for us right now because the cashflow is fine to handle it and of course IRs keep going down. But certainly something to watch out for - I definitely wish I had met a broker (and/or this forum) who knew what they were doing on this front early on - it would have helped a lot. And it would have made our current PPOR demo and rebuild plan more comfortable for us.
- A reduction in base salaried income as I transition across to a remuneration structure with more incentive and greater upside but less base.
- Changes in credit policies from days of yore
So a lot of my IO loans are transitioning across to P&I and there's not a lot I can do about it despite falling IRs, or if there is it comes with strings attached like higher IRs or greater concentration risk with existing lenders etc which I try to avoid for other reasons. Or maybe it's just my broker!
Not a biggie for us right now because the cashflow is fine to handle it and of course IRs keep going down. But certainly something to watch out for - I definitely wish I had met a broker (and/or this forum) who knew what they were doing on this front early on - it would have helped a lot. And it would have made our current PPOR demo and rebuild plan more comfortable for us.