When applying for Interest Only finance what is the maximum term you can apply for? In other words, does the IO only last for say 5 years at which time it kicks over to PI? Or can you specify an indefinate length of time for the IO period?
Five years is typical. Ten is possible.
Rolls over to P&I but further IO can be negotiated.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Howdy,
Could you theoretically then keep rolling over IO terms forever, even though the “real” value of the banks interest income is diminishing with inflation?
Thanks,
Steve.ps: Provided servicability is still there of course.
“Knowledge is Power”
If you want IO for the long term then a LOC will do it for you.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
St George will do IO for a maximum of 15 years!
Cheers
Stu
didn’t know St George could do that – well look at that…you learn something every day
If You never never ask, you’ll never never know”
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