Interest only on PPOR

[macdub]

Hi all, just a quick question..
Does the bank allow interest only payments on PPOR loan? Do people usually do this and leave the principal amount of repayment into offset?
thanks

 

[Ace in the Hole]

Sure.
Sure.

 

[superAndrew]

Hi macdub

Yes you can do that. It's better than a P+I Loan since you have access to the funds if you need to.

Andrew

 

[tobe]

which one is 'the bank'. some banks do and some banks dont. Some will only do it at a specific LVR.

 

[macdub]

thanks all for quick response.."the bank" is commbank..

 

[Rolf Latham]

Be wary that allowing a poor money manager access to IO vs PI is like letting the kid in the candy shop go loose withnp guidance.


If one has good money habits not an issue, but where there is demonstrated lack thereof, we'd normally insist on PI and in some instances accelerated PI for a year or 3

ta
rolf