so we bought our PPOR for 430000 in November with an Interest and principle loan thought ANZ
We decided that we would be changing this to an IP in about 2 years or so as we would be leaving town after reading here on the forums
we decided that we should change to an interest only loan. so we went to the bank and told them that we wanted to change to interest only loan a few weeks ago
Today i got a phone call from them saying that since the loan is new that i cant change the loan to interest only as it would add another year onto the loan and that it would go over the 30 year mark and that i would have to wait 3 months
my first reaction was no impressed and I was tempted to tell them forget it and that will change banks to some where i can get an interest only loan now
since we wont change the house to Investment property for about 2 years is it better to just wait the 3 months and then change or just go to another place and get the new loan now?
i don’t really want to make any rash decision over something that may just be trivial3 months is a tiny amount of time to wait compared to 30 years.
You are not changing to IP for 2 years so it won't be to big a problem to wait.
If you were buying another IP then the repayment saving may have been useful for cash flow to help repay a second IP
but if this is the only house you own then reducing the principle while it is your main residence is not a big problem as the interest component is not tax deductible when it is not an IP but is your main residence(PPOR)..agree with duckster.
thxs for the advice
You must be logged in to reply to this topic. If you don't have an account, you can register here.
