Interest Only Loan

[WebBoard]

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?????

 

[WebBoard]

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

 

[WebBoard]

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