Hi All,
I have a P & I loan coming out of a fixed term soon, I am wanting to convert this to interest only for 1 year. Unfortunately I can’t find any information from my bank regarding interest rates for this option. I would have assumed the interest rate would be higher than the normal fixed rate. Would this be the case? My bank is Bank SA.
Any help would be great.
Thanks,
BankSA does not charge different rates for interest only vs p&i, however your interest rate is very much likely to change from your fixed rate when it goes to variable.
Is there any reason why you want to only go interest only for one year? Is this your own residence, or an investment property?
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
It has been an investment property then PPOR and now back to investment. Looking at 1 year, as my remaining fixed loans come due next year at that point, I will consider selling or moving all to interest only. Just want to the option so I can divert cash flows else where if I want (or will continue to pay down the principal). I also have an offset set up on the variable portion so extra cash in my bank will still be working for me.
The property is also cash flow positive (excluding the principal repayments).
Cheers,
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