Interest only

Home > Financial Focus

Do you have an “Interest Only” mortgage? Do you know when the interest only period expires? Many IO borrowers remain underprepared for the step-up in repayments they will face when their loan switches to Principal and Interest (P&I).

The lack of understanding around interest only loans in concerning, particularly with many people having little understanding of what their mortgage repayments will look like should their loan switch to P&I.

Banks are now more reluctant to roll-over interest only loans, meaning many borrowers will be required to pay an extra 30 to 40 per cent in annual mortgage repayments once their loan switches to P&I.
With a lack of refinancing options available many mortgagors may have to significantly pull back on their spending, could fall behind in repayments or potentially even need to sell their property.
Review your mortgage arrangements, speak with your bank or mortgage broker to ensure you are not leaving yourself exposed to interest rate rises or changes to your mortgage structure.

Testimonials

"We have been with Momentum Financial Planning for over 8 years now and have always received quality financial advice. The guys are easy to talk to and make even the most..."

Greg & Ann, Coffs Harbour
See More Testimonials

Meet the Team at Momentum

David Gourley

Director / Financial Planner
Team Profiles

Newbrocom Pty Ltd (ABN 39 152 026 330) trading as Momentum Financial Planning is an authorised representative of Charter Financial Planning Limited, Australian Financial Services Licensee Licence number 234665.

 

DISCLAIMER | PRIVACY POLICY | FINANCIAL SERVICES GUIDE
TERMS & CONDITIONS

Momentum Financial Planning is one of a select number of businesses that has been awarded Certified Quality Advice Practice status by Charter Financial Planning. This programme sets an industry benchmark for providing high-quality financial advice. The certification is awarded based on industry qualifications, demonstrated best practise business operations and proven success in meeting the financial planning needs of clients.

© Momentum Financial Planning 2010 - 2018 All Rights Reserved :: Website by Giant Media :: ADMIN