IO Extension
- Thread starter Fester
- Start date
Hi Fester,
Im with WBC. I'm refixing my Fixed Rate period on a few IO loans at the moment. As the new fixed term takes me over the intial 5 year IO period the bank said they will extend the IO period up to when the new fixed rate period expires.
Approx 1 month prior to it expiring they will also offer me another IO term should I wish, otherwise the loan reverts to a P&I loan at what ever the variable rate is at that time.
No valuations needed, however as my CGA strategy requires regular purchasing valuations are part of the normal refinacing regime for doing so.
cheers
Im with WBC. I'm refixing my Fixed Rate period on a few IO loans at the moment. As the new fixed term takes me over the intial 5 year IO period the bank said they will extend the IO period up to when the new fixed rate period expires.
Approx 1 month prior to it expiring they will also offer me another IO term should I wish, otherwise the loan reverts to a P&I loan at what ever the variable rate is at that time.
No valuations needed, however as my CGA strategy requires regular purchasing valuations are part of the normal refinacing regime for doing so.
cheers
Hiya Fester
One of the challenges when doing new IO periods is that most lenders see this as credit critical.
If your LVRs are anywhere near 80 % they will usually rely on an APM valuation - unless your IPs dont fit the model.
ta
rolf
One of the challenges when doing new IO periods is that most lenders see this as credit critical.
If your LVRs are anywhere near 80 % they will usually rely on an APM valuation - unless your IPs dont fit the model.
ta
rolf
Where are the properties though, is the bank being cautious?
Interestingly I'm talking to WBC again today re rates on my loans and what they can do for me.
I have 4 Fixed Interest Interest Only loans with them and from memory the rate is about 6.7-6.8% ?
Problem is I also have cash in another account (on-line interest account at about 5.5%) I'd rather have it in an off-set against one of the loans, WBC said no can do and usggested taking one loan to a rocket repayment (variable I believe)..
REDWING
Interestingly I'm talking to WBC again today re rates on my loans and what they can do for me.
I have 4 Fixed Interest Interest Only loans with them and from memory the rate is about 6.7-6.8% ?
Problem is I also have cash in another account (on-line interest account at about 5.5%) I'd rather have it in an off-set against one of the loans, WBC said no can do and usggested taking one loan to a rocket repayment (variable I believe)..
REDWING
redwing said:
Redwing,
Over what term are your current fixed IO loans?
Im rolling 4 current fixed IO loans over at 6.49% from next month for another 3 years. Plus I've decided on fixing another couple of new IO loans to 6.59% for 3 years also.
The negotiation process was like getting blood out of a stone - tho in the end I believe its paid off considering WBC's 3 year fixed is advertised at 6.65%
.Hope this helps with your negotiations
Cheers
