To quote Susan Edmunds, “Interest-only mortgage lending has come in for scrutiny over the past year, amid regulatory concern on both sides of the Tasman that the lending practice could create financial instability.” This is why banks are reluctant to ‘roll-over’ interest-only periods. You can read the full article here…
At Tony Mounce Mortgages and Insurance, we are seeing that banks want P&I (Principal & Interest) repayments and are not readily rolling interest-only periods over once they have ended. This is where like-for-like refinancing comes in as it is based on the dollar part of the lending, not the structure of the loan. Therefore, new five year interest-only periods can commence.
Give TMMI a call today. We would love to chat about how we can review your position and help you achieve your property goals.