Looking at my first IP and considering loans at the moment, I am aware that any loan has to be paid back to the bank, even when you choose interest only, and in assisting in keeping the payments as minimal as possible how long is it before the loan reverts to P&I?
Can this be negotiated with the bank and what is a realistic time frame to achieve?
PFranky
It will vary from lender to lender. Some lenders will offer maximum 5 years other will go to 15 years straight off the bat.
In most cases we find that on expiry most lenders will roll the IO period over subject to satisfactory conduct and all other matters being equal.
Like everything there are lenders that lean towards investors and lenders that dont.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Yes, interest only loans can generally be taken out over 1-5 years and to a maximum of 15 with some lenders.
Just remember that you don't have to stay with one lender for the life of the loan and could easily change (refinance) at the end of your IO period while sticking to the same strategy.
Good luck with your purchase.
Luke Goodman
Ph: 0414539055
Mortgage Specialist
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