This has happened in the past 2 years on 2 of our loans. Recently it has happened to a third loan and we've got another 2 to kick over later this year.
We have tried (for the third time) to refinance back to IO with the same lender and with a different lender to NO AVAIL.
Our incomes are higher.
Our rents have increased.
But...
Valuations of properties have come in lower (originally financed to 80% LVR) and we're stuck.
It translates to about an extra $2k per month in serviceability for us.
With hindsight we should have done IO for 10 years OR set loans up as LOC.
We have tried (for the third time) to refinance back to IO with the same lender and with a different lender to NO AVAIL.
Our incomes are higher.
Our rents have increased.
But...
Valuations of properties have come in lower (originally financed to 80% LVR) and we're stuck.
It translates to about an extra $2k per month in serviceability for us.
With hindsight we should have done IO for 10 years OR set loans up as LOC.