Switching from Interest Only to Principal and Interest

Most banks have a limit on the Interest Only term for owner occupied and investment loans. For owner occupiers, it is normally 5 years. For investors, it can vary from 10-15. If you are reaching the end of an interest only term in your loan, your bank may or may not offer to extend, and if they don't, your loan will rolled over into a default variable rate product. 

However, and notwithstanding what your bank says, you have options. You can refinance as interest only with another lender, or if you are ready to switch to principal and interest, then you want to ensure you are getting the best product for your needs. The mortgage market changes quickly, and without the benefit of a professional to help guide you, you can often end up in the wrong product. This costs you money and may limit your future finance options.

To get the most to of your loan, contact your broker and get them to review your finance obligations and future requirements. Not only is this free (in most cases), but you can also have peace of mind that you are not paying any more than you need for your loan. 

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To see how much you could save and what options you have, call Taras on 0414636211. It may be the most profitable phone call you make all year.