Can I still get an Interest Only loan ??
You've probably noticed that the regulator (APRA) has been making banks (hence consumers) change their habits.
A few months ago the focus was to reduce the amount of (and growth in) investment property lending. I've commented previously on how investment loan interest rates have increased - they are now about 0.2% to 0.5% higher than home loan rates. Also that rules around investment lending have got tougher.
The current focus of APRA is to reduce the amount of "interest only" lending. This is a popular strategy with (especially) investment property owners. Recent statistics show that 37% of all current residential home/investment property lending in Australia in "interest only".
APRA has (last Friday) issued guidance to banks that only 30% of new lending can be "interest only". That's a reduction of about 20%.
My personal view is you should watch for increases in interest rates for "interest only" lending, and lenders being tougher when considering approving an "interest only" period (especially for "home loans"). We've seen a lot of interest rate change for interest only loans in the past 2 weeks, so it's clear there has been consultation of the requirement from APRA to the banks prior to the announcement.
This link is to an article with more details for those of you that are interested.
Bottom line. Yes you can still get interest only lending, but (mostly) only for investment properties. Also, you should expect to pay a slightly higher interest rate, and also expect the bank to have increasing focus on you having a realistic wealth creation (and exit) strategy.