Interest Only Loan

Discussion in 'Original Property Investor Forum Archive' started by WebBoard, 11th May, 2002.

  1. WebBoard

    WebBoard Guest

    From: Mike .


    Refinance IO Loan after initial period
    From: Alan H
    Date: 17 Sep 2000
    Time: 22:03:55

    Hi Guys. This forum is very interesting! I only have the one IP as yet and the general concensus from what I read is to use IO loans and to keep them that way to maximise the tax benefits. For my IP I took out a 3yr IO fixed loan and then after the 3yrs I extended it for a further 2yrs IO. Then the interesting bit occurred!! As the extended 2yr period is almost over I rang up my lender (Aussie Home Loans) and said I would like to extend my IO fixed loan for another 3yrs. Can't do they said! 5 years is the maximum.

    I started ringing up bank after bank, mortgage lender after mortgage lender and I got similar answers from them all (there were quite a few who didn't know if I could and when I rang a couple of different people I actually got different answers!). I guess this is a simple question for many of you but I want to keep rolling my IO loan over rather than converting to P&I.....who does do this?????
     
    Last edited by a moderator: 5th Apr, 2017
  2. WebBoard

    WebBoard Guest

    Rick

    Reply: 1
    From: Mike .


    Re: Refinance IO Loan after initial period
    From: Rick
    Date: 18 Sep 2000
    Time: 11:47:30

    Alan,

    I just set a 5 year IO loan with westpac and they told me they will extend the IO period but you have to notifyl them prior to coming out of your first 5 year term.

    Cheers Rick
     
    Last edited by a moderator: 5th Apr, 2017
  3. WebBoard

    WebBoard Guest

    DuncanM

    Reply: 1.1
    From: Mike .


    Re: Refinance IO Loan after initial period
    From: DuncanM.
    Date: 18 Sep 2000
    Time: 09:45:42

    Most institutions have the same policy.. 5yrs is the most common.. Move institution and go another 5yrs with another lender if Aussie wont resign you up for another IO period.

    Duncan.

    Residential Property Record Keeping Software.

    www.otter-software.com.au
     
    Last edited by a moderator: 5th Apr, 2017