What happens at the end of the 5, 10, or 15 year IO period? Say it was 5 years IO. To get another IO period would require another loan application right? So if I have lower employement income at that 5 year mark or become unemployed at that time, would it just revert to P&I without the need for a loan application? If not, I think it’s safer to go P&I from the beginning.
It depends on the lender.
Some it will be a simple switch process – others will require a new application which means new income documents.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Do you find out whether a new application is required at the beginning, i.e. is it shown on the loan docs what the process is or do you find out at the end of the IO period?
In the beginning, which period is usually most commonly on offer or which period is not difficult to get approval for, would it be 5, 10 or 15 years?
What would happen if the loan is not approved at the end of the IO period, forced to sell?
Can the loan be converted to P&I during the IO period without loan approval?
If you start with IO for more leverage then convert to P&I during the IO period, would that be ok?
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