Loan with Max. period of interest-only payment?

Hi all,
can anyone tell me what is the Max. period of interest-only payment loan without being financially reviewed again ? I currently working at a remote area therefore my PAYG income is much higher due to various allowance. However I will return to CBD one day and the wage will drop. I like to make use of currently temporary credit capacity to buy another IP but still worry that bank will refuse to renew interest-only application due to my income change. any good suggestion ?
 
The longest I've ever seen is 15 years. It's often subject to serviceability as the assessment criteria can change significantly (for the worse).

A LOC product is technically interest only for the entire loan term up to 30 years. This type of product usually isn't ideal for that kind of time frame.

Quite a few lenders default to 5 years and don't have any flexibility on this.
 
Hi all,
can anyone tell me what is the Max. period of interest-only payment loan without being financially reviewed again ? I currently working at a remote area therefore my PAYG income is much higher due to various allowance. However I will return to CBD one day and the wage will drop. I like to make use of currently temporary credit capacity to buy another IP but still worry that bank will refuse to renew interest-only application due to my income change. any good suggestion ?

you have received some great specific technical advice from the brokers earlier.

Im an IO a holic too, but if your IP cashflow strategy relies on IO v PI we may have some other issues in say 7 years time when rates could be 7 % ?


ta
rolf
 
STG and Westpac will do 15 years IO no worries. After 5 years...paying principal should not worry you because rents should have almost doubled by then.

CBA will do it also if requested and if the credit jockeys agree....

Avoid NAB, ANZ, ING..at all costs...they will review financials after 5 year...very inflexible in this regards....
 
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