NAB I/O @ 5 Years

[davidw89]

Hi,

I have an Investment property financed with NAB. It's only one year into the loan but it is structured to be interest only. After 5 years, it will revert back to P&I. I was just wondering, is it possible to extend beyond 5 years? If not, will my only choice left be to refinance?

Thanks,
David

 

[Rolf Latham]

Hi,

I have an Investment property financed with NAB. It's only one year into the loan but it is structured to be interest only. After 5 years, it will revert back to P&I. I was just wondering, is it possible to extend beyond 5 years? If not, will my only choice left be to refinance?

Thanks,
David

under todays scenarios you generally need to do an internal refi to extend

Some other lenders are simpler eg WBC STG and CBA et al

ta
rolf

 

[Peter_Tersteeg]

5 yrs I/O is standard practice for NAB. It's usually fairly straight forward to renew for another 5 years.

If nothing else, it's a good opportunity to review the loan.

 

[Cadwallader]

That's the same loan structure I have, fingers crossed we purchased in an area with good growth over the next 4 years then we will refinance to pull equity out to fund another project! I don't see it being any trouble to move back to interest only once the interest only section is up

 

[Shahin_Afarin]

It is possible to extend but NAB will reassess the application including servicing so its certainly not an easy process whereas with say CBA its just a matter of completing a form.

 

[davidw89]

Right, so they will notify you prior to the 5 year period being finished and you will be assessed whether they can extend another 5 years? If not, I guess you can always go down the refinancing route?

 

[Shahin_Afarin]

Yes thats right - its like a brand new application so they will assess everything not just servicing.

This is one of the many reasons brokers need to ask a lot of questions particularly when referring NAB as a suitable lender.

 

[Chilli]

I have been with NAB for years, and for this exact reason (having to bother with re-IO) every 5 years.
I am looking at moving to another lending institution with an easier process than NAB.
It would be great also if I could find one allowing having offset accounts against fixed rate loans. Have read somewhere that Adelaide bank allows this.
(I used to frequent SS years ago, fond memory, very thankful, learnt a great deal made some good money from property investing that helped/saved me from a bad business venture later on -never again- and is still serving me well to-date.
So hello nice to meet you to SS'ers, and a special hello to probably a few who could still remember me).

Regards,

 

[Melbournian]

i'm with bankwest. and my I/O loan is expiring in a couple of months. I renewed it again with bankwest - all i had to do was to sign a transfer form to a new loan product. no payslips etc.

did the same with ANZ once too many years ago.

 

[Shahin_Afarin]

i'm with bankwest. and my I/O loan is expiring in a couple of months. I renewed it again with bankwest - all i had to do was to sign a transfer form to a new loan product. no payslips etc.

did the same with ANZ once too many years ago.

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.

 

[Melbournian]

i applied for a NAB credit card recently, and they bascally drilled me for info like crazy to get it approved, order of name (why no middle name and why there is one on the driver's license), why the employer name did not reflect the pay slip employer name etc (subsidiary of a company) etc.

 

[tobe]

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.

Rams max 10 years. and ANZ will want to re assess the deal if it was written with LMI originally.

 

[Peter_Tersteeg]

i applied for a NAB credit card recently, and they bascally drilled me for info like crazy to get it approved, order of name (why no middle name and why there is one on the driver's license), why the employer name did not reflect the pay slip employer name etc (subsidiary of a company) etc.

There's some fairly strict legislation around properly identifying people and it goes hand in hand with fraud prevention. Some lenders take this to the extra degree, but it's strange that NAB pinged you for having a payslip without your middle name on it (can't remember the last time I say a payslip that did include a middle name). Either there's more to the story or you were dealing with the wrong person.

 

[Melbournian]

beats me peter - but i did give my bank account statements (which had company X ) on the transanction however my payslips were using company y. Not my fault - just gave what i had.

In essence company y was a subsidiary for company x and combo. It is a listed ASX - which was company X.

I think the names on payslips both first and middle were initials as oppose to the full name on drivers license.

and i think all these comes from overseas call centre - so beats me.

 

[Peter_Tersteeg]

I just got off the phone with a particularly "detail oriented" credit assessor. I feel your pain.

 

[Colin Rice]

i applied for a NAB credit card recently, and they bascally drilled me for info like crazy to get it approved, order of name (why no middle name and why there is one on the driver's license), why the employer name did not reflect the pay slip employer name etc (subsidiary of a company) etc.

Often comes down to the personality, "or lack there of" with the assessor involved. Some are great and others are a royal pain!

 

[Marty McDonald]

It's about standards at the end of the day though, how loose do you want it to be Melburnian? I get that its not your fault that you get paid by a subsidiary and I get its only a credit card but totally also understand why the nab would ask those questions. Maybe they just need to ask more nicely!

 

[miss green eyes]

I have a question:
Lets say i had a 30 year loan with nab, which started in 2010. It is currently i/o.
If i were unemployed in 2015 on the 5th anniversary of my loan, would nab force me to sell?
Lets say i could not find a job, had decided to be a stay at home mum, etc

 

[Colin Rice]

I have a question:
Lets say i had a 30 year loan with nab, which started in 2010. It is currently i/o.
If i were unemployed in 2015 on the 5th anniversary of my loan, would nab force me to sell?
Lets say i could not find a job, had decided to be a stay at home mum, etc

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.

 

[miss green eyes]

Thank you Colin rice!