NAB I/O @ 5 Years

Sooooooooo, what's the catch? If there were no catches, the whole forum would already be signed up... and I would be sacking my broker. But somehow, with just 12 posts in and making statements like that, I'm not completely convinced...

Low LVRs? Platinum level DSRs?

And sooo... he disappears.

In the meantime, time to celebrate (winnings of) the Hawks game.
 
more or less full new loan application. We refi clients out to other lenders with easier switching across or longer i/o terms than 5 years.

You have to remember that it is per loan. So if you have 2-3 splits on variable on IO then every time you have to jump through hoops.

Think the last one they did it took them about 9 weeks to sort out as they screwed up the security underneath it and nobody noticed until the extension request went through.
 
They will ask for all paperwork again.....a very painful process.

Once of reasons I am leaving the Nab!

The other is their back off process is crap.....I am scratching my head as to how they won bank of they year! The judges must have been on drugs....

So no one here knows NAB's policy on extending the 5 years I/O?
 
If you are extending an IO term with NAB then its definitely a complete re-assessment of the application.

However if you are converting to P&I then no assessment.

This policy stems from the fact that NAB is a business bank - they have inherited a lot of those policies.
 
They ask you the questions over the phone and their staff fill out the form full of mistakes. When you get the loan documents, you just leave all the mistakes as they appear if they work in your favour. :D
I think we only had to fax them the previous two payslips.
 
Best "borrower friendly" mistake I have seen in the last couple of years was AMP doing a 3 year Fixed rate at 4.19% for a client of mine....
 
Complete reassessment as in you'll have to fill in the form detailing your financial position and income, etc.

I see that as an incentive to shop around, since you doing full paperwork anyway. I am in this situation now as I am trying to restructure by splitting and change some splits from SVR to LOC.
 
I see that as an incentive to shop around, since you doing full paperwork anyway. I am in this situation now as I am trying to restructure by splitting and change some splits from SVR to LOC.

Yes but the problem is that lending appetite may have become more restrictive by way of policy or borrowing capacity which means you will not be able to refinance or shop around period.

For the record NAB will require a full assessment upon the expiration and extension of the interest only period.
 
Sounds exactly like Iden's Adelaide funded MM product - otherwise known in retail bank land as smart suite :) Perfectly good product, although the servicing calc is a touch on the weak as P*SS side, but the offset and fixed combo is a real niche- no doubt. And they are one of two lenders who take the NRAS tax credit for servicing.

the ABL servicing calc for building on a well established portfolio isnt too bad.

In most cases slots in around between HSL and Macq.


BUT, while abl uses both LMI providers they dont have a DUA with either, so in general we tend to stick with 80 % lends in may cases.

ta
rolf
 
For the record NAB will require a full assessment upon the expiration and extension of the interest only period.

That's no good. Does that full assessment include a valuation of the property, re-evaluate the lend based on the new valuation?

Just concerned when a property value fall on expiration of IO
 
That's no good. Does that full assessment include a valuation of the property, re-evaluate the lend based on the new valuation?

Just concerned when a property value fall on expiration of IO

Full assessment does include a valuation.

In general though, if you have a fear that in five years that a specific property will be a lower nominal value than when the finance is taken out, it may not be a good idea to buy said property to begin with!
 
It's happy times now that every property is growing in value. However state by state you can pick a 5 year period that is either 0 or negative growth

I paid a Logan property for $240K in 2014 from a vendor that paid $280k in 2008.

In Sydney West, you would pay higher price in 2003/2004 than you would in 2008/2009.
Why did I purchase in those years would be an argument, but am sure a few SS here agrees the crystal ball isn't that clear then, as is now.
 
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