Thanks Guys
i have been speaking to Adelaide Bank and they
are telling me a different story.
They say that if i took a loan for 200k interest
only and repaid 100k at settlement even though
the interest will be charged only on the 100k, if i didnt make my repayments based on the 200k my
100k which was available for redraw will reduce
every month.
If i made my repayments based on the 200k(but my balance was 100k), my principal owing would reduce but my amount available for redraw stays at 100k.
Does this make sense to you guys?
What they are saying is that a term loan operates
this way even if it is only interest only.
