NAB I/O @ 5 Years

So at the end of the 5 years, will my loan automatically revert to p&i? If i want to continue on i/o, i could ask the nab, but it will be refused if i am unemployed, i assume?
Or should i just keep my head down if i am still unemployed and just pay the p&i, then ask for i/o again when i get a job?
 
Should recieve a letter about 1 month before it is due to rollover informing you that its reverting to P&I.

I havent done one yet so dont know if they require income verification but probably not if your repayment conduct is good.
 
NAB/HSL have recentley made changes to the IO extension process and believe it is a 2 page tick and flick to apply with no financial info required.
Hi Colin, may I ask how recent this change is, because son is with NAB and right now is still forced to either refinancing with NAB to go back to IO (I think he is, like me, sick of this process and is looking at another bank). Not friendly particularly for someone who works overseas.
He received "the letter" in May but was overseas so the loans were auto converted from IO to PI in June.
Regards,
 
Yep and add St George, Westpac, CBA and RAMS to that mix - simple one pager's.

Like any bank NAB has a lot of good things going for it but unfortunately this is its weakness.

Few lenders like Westpac, ANZ, RAMS will do 15 years IO.

Shahin 15 years IO must be pretty rough on serviceability calculations, right? Am I correct in saying that most lenders will assess your ability to repay the increased P&I (due to short loan period) after the IO period is up?

I don't have access to this kind of information anymore in my new job.
 
Shahin 15 years IO must be pretty rough on serviceability calculations, right? Am I correct in saying that most lenders will assess your ability to repay the increased P&I (due to short loan period) after the IO period is up?

I don't have access to this kind of information anymore in my new job.

Absolutely, some no and some yes (e.g. CBA). Having said that, CBA's IO extension is the best and easiest in the industry (when they are not flat out and don't mysteriously lose the forms).
 
About three weeks ago recieved an email plus attached form but only skimmed through it.

It was for Homeside (soon to be Nabbroker) so assuming applies for NAB as well.

I hope I'm wrong but I think you still need to do a new application for IO extension - that email was referring to simplifying the conversion of IO to P&I and a couple more thing.
 
No they will not unless you are in default, that is not making repayments.

As long as you make payments you will have no issues.

NAB/HSL have recentley made changes to the IO extension process and believe it is a 2 page tick and flick to apply with no financial info required.

Could you confirm this? How much longer can you extended Interest Only past 5 years?
 
was just asked last week for a full loan app for a 5 year I fixed which was 2 yrs over the initial 2 years.

NAB still sucks in this area.

ta
rolf
 
NAB sucks the big one!

I am in the process of moving all my NAB loans to Westpac!

I got a call from NAB retention today...I told them to get stuffed. Bloody useless lot!

was just asked last week for a full loan app for a 5 year I fixed which was 2 yrs over the initial 2 years.

NAB still sucks in this area.

ta
rolf
 
NAB sucks the big one!

I am in the process of moving all my NAB loans to Westpac!

I got a call from NAB retention today...I told them to get stuffed. Bloody useless lot!

Sorta the opposite for me. Every single time ive ever spoken to or visited westpac they've done it wrong or broken something.
 
I've found WBC to be the easiest to deal with from the stable of Westpac, St George & Rams, especially for equity top ups, rolling over to new terms etc
 
10 Yrs I/O

Good to see a few brokers providing some very good feedback. The sad truth is none of the majors (CBA, WP, ANZ, NAB, STG, BW, SUNCORP or AMP) really provide a product to match the needs of the investor.

I beat a homeside deal every day with this offer for investors. 10 Yr I/O terms funded by a Bank with a Fixed Rate with 100% Offset. The rate as of 27.9.2014 is 4.89% or 4.63%(brokerage payable) for a 3yr fixed period with NO ONGOING FEES. Credit decisions are quick and exceptional service ...

Unlike NAB, decisions are not CREDIT SCORED ..... so you do have a real Credit assessor who we speak with before we submit the application.

A fuel offer allows you a rebate on fuel and if you really want to get the most out of the deal a credit card at 5.39% for the life of the card and the funds can be used for property settlement.
 
Good to see a few brokers providing some very good feedback. The sad truth is none of the majors (CBA, WP, ANZ, NAB, STG, BW, SUNCORP or AMP) really provide a product to match the needs of the investor.

I beat a homeside deal every day with this offer for investors. 10 Yr I/O terms funded by a Bank with a Fixed Rate with 100% Offset. The rate as of 27.9.2014 is 4.89% or 4.63%(brokerage payable) for a 3yr fixed period with NO ONGOING FEES. Credit decisions are quick and exceptional service ...

Unlike NAB, decisions are not CREDIT SCORED ..... so you do have a real Credit assessor who we speak with before we submit the application.

A fuel offer allows you a rebate on fuel and if you really want to get the most out of the deal a credit card at 5.39% for the life of the card and the funds can be used for property settlement.

Wow, 10 yrs IO at less than 4.9% and 100% offset. I am sure I can make use of this. Don't keep me in suspense, let me know how to apply. :D
 
I beat a homeside deal every day with this offer for investors. 10 Yr I/O terms funded by a Bank with a Fixed Rate with 100% Offset. The rate as of 27.9.2014 is 4.89% or 4.63%(brokerage payable) for a 3yr fixed period with NO ONGOING FEES. Credit decisions are quick and exceptional service ...

Unlike NAB, decisions are not CREDIT SCORED ..... so you do have a real Credit assessor who we speak with before we submit the application.

A fuel offer allows you a rebate on fuel and if you really want to get the most out of the deal a credit card at 5.39% for the life of the card and the funds can be used for property settlement.

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?
 
Good to see a few brokers providing some very good feedback. The sad truth is none of the majors (CBA, WP, ANZ, NAB, STG, BW, SUNCORP or AMP) really provide a product to match the needs of the investor.

I beat a homeside deal every day with this offer for investors. 10 Yr I/O terms funded by a Bank with a Fixed Rate with 100% Offset. The rate as of 27.9.2014 is 4.89% or 4.63%(brokerage payable) for a 3yr fixed period with NO ONGOING FEES. Credit decisions are quick and exceptional service ...

Unlike NAB, decisions are not CREDIT SCORED ..... so you do have a real Credit assessor who we speak with before we submit the application.

A fuel offer allows you a rebate on fuel and if you really want to get the most out of the deal a credit card at 5.39% for the life of the card and the funds can be used for property settlement.


Smells like an ABL funded Mortgage managed product perhaps even through Iden.

Generalist marketing comment such as the The sad truth is none of the majors (CBA, WP, ANZ, NAB, STG, BW, SUNCORP or AMP) really provide a product to match the needs of the investor. ................. is not overly useful. Each lender has its own niches and holes.

A primary example where many mortgage managed products dont fit well is where there is LMI involved. Most providers dont have a DUA and that creates issues for portfolio builders

ta
rolf
 
Good to see a few brokers providing some very good feedback. The sad truth is none of the majors (CBA, WP, ANZ, NAB, STG, BW, SUNCORP or AMP) really provide a product to match the needs of the investor.

I beat a homeside deal every day with this offer for investors. 10 Yr I/O terms funded by a Bank with a Fixed Rate with 100% Offset. The rate as of 27.9.2014 is 4.89% or 4.63%(brokerage payable) for a 3yr fixed period with NO ONGOING FEES. Credit decisions are quick and exceptional service ...

Unlike NAB, decisions are not CREDIT SCORED ..... so you do have a real Credit assessor who we speak with before we submit the application.

A fuel offer allows you a rebate on fuel and if you really want to get the most out of the deal a credit card at 5.39% for the life of the card and the funds can be used for property settlement.

That product only seems to touch on rate, IO and an offset account, with nothing that amazing other than a cheap rate.

What's their addback provisions, cash out requirement's, servicing of internal and external debt, 1 yr Self employed financials, upfront valuations, val requirements at tiered LVR's etc.

Kinda like buying a car based on the tyres and car mats provided - I'd want to see the whole picture. ;)
 
Smells like an ABL funded Mortgage managed product perhaps even through Iden.

Generalist marketing comment such as the The sad truth is none of the majors (CBA, WP, ANZ, NAB, STG, BW, SUNCORP or AMP) really provide a product to match the needs of the investor. ................. is not overly useful. Each lender has its own niches and holes.

A primary example where many mortgage managed products dont fit well is where there is LMI involved. Most providers dont have a DUA and that creates issues for portfolio builders

ta
rolf

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.

But you wont grow a big portfolio with it - LMI and servicing calc restrictions will not let you get as far as you can get elsewhere.

I would also make a small point about AMP not offering investor friendly products - ummmm, strong calc, 100% rent, actual repayments, master limit , 10 splits , 10 year I/O anyone? Hope you arent in a rush though - their processing/back office is not exactly fast.

All this series of posts proves is that you have to be willing to move lenders and restructure finance from time to time if you are serious about growing a portfolio, as policies and needs change.
 
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