All Topics / Finance / Switching ip to interest only assessment

Viewing 5 posts - 1 through 5 (of 5 total)
  • Dandare
    Participant
    @dandare
    Join Date: 2020
    Post Count: 0
    April 18, 2021 - 12:13 pm

    Hello all,

    this is a pretty straight forward question for the experienced people on here…

    After researching, I intend to change my investment property loan from repayment to interest only, I am just wondering can anybody advise on the criteria for which this is approved or denied?

    I would like to think this is a relatively straightforward ask but I know that it’s based on loan review or assessment. I would like to get this information straight before I apply, I have a ppr and an investment property both on repayment, I plan to re mortgage the ppr soon after I complete my renovations. Also self employed.

    thanks in advance,

    Dan

    Profile photo of David HuiDavid Hui
    Participant
    @davidmca
    Join Date: 2021
    Post Count: 0
    June 10, 2021 - 10:11 am

    Generally speaking it would require a full assessment from a lender which will check (amongst the usual items) serviceability over the shortened P&I term.  Unfortunately it’s not usually a quick switch as it may have been in the past.  The upside is, it may be an opportunity it review all of your lending and see if there’s a better option out there.

    David Hui | Mortgage Capital Australia
    http://mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    Finance Broker (Brisbane based - Australia-wide service)

    Dandare
    Participant
    @dandare
    Join Date: 2020
    Post Count: 0
    June 10, 2021 - 10:19 am

    Hi David,

    thanks for taking the time to reply. I have still not moved forward on this as I am concerned that my serviceability may open up a can of worms with the lender.

    My finances have been affected by the downturn although I feel I am now in a good position to move forward with my investing due to my recent property renovation. I am in a position where I can work when I like, as and when I need the extra cash but due to really not enjoying my job I tend to work on side projects more than my main income producer, my trade.

    what’s your thoughts?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    June 12, 2021 - 11:01 am

    Hi Dandare

    I am sorry i dont agree that their is any can of worms to open up.

    David has replied to your post so why not hit him up and get him to run some servicing numbers for you with both your current lender and others.

    A better deal could be round the corner and your existing lender is not going to shout out and tell you.

    Cheers

     

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Colin RiceColin Rice
    Participant
    @fms
    Join Date: 2011
    Post Count: 338
    June 15, 2021 - 5:42 pm
    Dandare wrote:

    After researching, I intend to change my investment property loan from repayment to interest only, I am just wondering can anybody advise on the criteria for which this is approved or denied?

    Pre APRA/ASIC was a simple process, now it requires a full-blown assessment equivalent to a brand new application.

    Dandare wrote:

    I have a ppr and an investment property both on repayment, I plan to re mortgage the ppr soon after I complete my renovations. Also self employed.

    Ask a broker to complete a preliminary assessment to see what’s possible and at the very least they can guide you in the right direction if you are not qualifying just yet due to the downturn and being self-employed.

    Plenty of sharp brokers to speak to on here.

     

    Colin Rice | CDR Finance
    http://cdrfinance.com.au/
    Email Me | Phone Me

    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

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