Principal & Interest Investment Loans

We have completed two client applications this week for clients to refinance and change the investment loans back to interest-only repayments. If you still have a home loan, it doesn't really make sense to pay principal and interest repayments on an investment loan, as that additional money is better used to pay down the home loan quicker.

Unfortunately, to change the investment loans back to interest-only requires a full application and it is oftentimes better to consider refinancing at that point. Why would you stay with 3.8% pa variable interest only, directly through the bank, when we could reduce that to circa 2.54% pa? Why would you pay 3.54% pa investment principal and interest, when you could fix with another lender for circa 2.39% pa principal and interest, or better yet, change it back to interest only and use that additional money to pay down the family home?

Please get in touch, we can help.