The dilemma for Interest Only loan holders
Summer heat waves aren’t the only thing Australian households need to brace for. According to ABS data, 900,000 property loans will go from interest only (IO) mortgages, to principal and interest over the next 3 years. At today’s rates, these mortgagees will need an average $400 more for monthly repayments, if their loan is around $316,000 — almost $4,800 a year!
With banks raising out-of-cycle, credit rules tightening and a report due from the Royal Commission shortly, the screws are definitely tightening when it comes to loans and investors. All this may leave many IO borrowers in a sticky situation, joining the already growing league of ‘mortgage prisoners’ battling to negotiate or refinance.
And that’s where Loan Market comes in.
If you’re working with any of these types of clients, get in touch today. Our impressive panel of 35 lenders will compete fiercely, driving super hard to deliver your clients the most competitive deal. We'll look at each bank's lending criteria and see which one can help your client. There’s hope yet!