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Do you have an interest only investment property loan?

The concern around interest only loans has been well publicised recently, with many economists concerned that tougher lending standards will place a proportion of investors under financial stress when interest only periods for individual borrowers comes to an end.

If you have an interest only loan, then now is a good time to review your investment property loan. To be prepared, note the following:

  • When does your interest only period finish?
  • What current interest rate are you paying?
  • How much interest are you currently paying per month?
  • What will the interest rate be when the interest only period ends?
  • How much will your repayments be when you pay principal and interest?

Once you have this information then you can assess the impact on your finances. On the positive side, principal and interest (P&I) loans generally have a lower interest rate, so for some, the rollover will only have a marginal impact.

To ensure you get the right deal, now is a great time to talk to a lender. Our Lending Consultant Ben McDonald, can help assess your situation and find a loan that with a competitive interest rate.

To discuss your loan call Ben McDonald at PPT Capital on (03) 5331 3711.

DISCLAIMER: The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

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