Interest only - PPOR

[aussieshorter]

I have (what I hope is) a pretty simple question that I want to get some clarity on.

I currently have a P&I loan (variable rate) for my PPOR with NAB. After speaking with someone at a local branch about changing this loan to Interest Only, they told me the quickest way to get this done was to do it over the phone.

However, when I rang and spoke to a different person they said that NAB's policy was that if the loan was for a PPOR, it must be P&I (no IO option).

Is this right???

 

[Rolf Latham]

I have (what I hope is) a pretty simple question that I want to get some clarity on.

I currently have a P&I loan (variable rate) for my PPOR with NAB. After speaking with someone at a local branch about changing this loan to Interest Only, they told me the quickest way to get this done was to do it over the phone.

However, when I rang and spoke to a different person they said that NAB's policy was that if the loan was for a PPOR, it must be P&I (no IO option).

Is this right???

"policy" yes, but nothing that sending a mortgage discharge wont fix pretty quick : )

ta
rolf

 

[Terry_w]

ive just put a client into homeside with an io loan on owner occupied.

 

[Rolf Latham]

ive just put a client into homeside with an io loan on owner occupied.

HSL dont have an issue with it

NAB are the ones that are old skool

ta
rolf

 

[starter]

I have a PPOR with NAB with IO, set it up in 2010 and NAB never raised it as an issue.

 

[Aaron_C]

Only a small matter. Most brokers won't put a deal to NAB rather than Homeside unless there is a policy reason to do so like owner-builder or unit trust/companies.

 

[tvadera]

I have (what I hope is) a pretty simple question that I want to get some clarity on.

I currently have a P&I loan (variable rate) for my PPOR with NAB. After speaking with someone at a local branch about changing this loan to Interest Only, they told me the quickest way to get this done was to do it over the phone.

However, when I rang and spoke to a different person they said that NAB's policy was that if the loan was for a PPOR, it must be P&I (no IO option).

Is this right???

Hi,

I have done that with nab over the phone, no issues

 

[Mick C]

Homeside - you can i/o ...no issues.

NAB- I/o only is allowed for PPOR and IP , the only exception is vacant land OR if the loan is over 90% LVR.

Just ring them again.

Regards
Michael

 

[LoneWolf]

Guys, I also got IO loan, however, it must be re-newed each year, which is quite annoying

Surely there are other banks that can do 5-10 years?

 

[Mick C]

Guys, I also got IO loan, however, it must be re-newed each year, which is quite annoying

Surely there are other banks that can do 5-10 years?

Most banks if not all will allow for 5 years in 98% of the time....only on some rare occasion ( your situation rather then the bank) will they require you to roll over every year.

- If your on a 1 year fixed rate
- 1 year fixed rate with interest in advance
- Vacant land/construction ( only some banks)

Regards
Michael

 

[Rolf Latham]

Guys, I also got IO loan, however, it must be re-newed each year, which is quite annoying

Surely there are other banks that can do 5-10 years?

annual review ?

usually the DOMAIN of the NAB loc

t
arolf