Will Being Forced Out Of IO Repayments Destroy Your Portfolio?
As the interest only loan crackdown starts to bite, mortgage broker Richard Morgan says investors must act now to safeguard their portfolios.
(Image source: Shutterstock.com)
Residential investors with interest only (IO) loans must address their lending options or face a dangerous refinancing situation once their initial IO periods end. Stricter measures introduced by the Australian Prudential Regulatory Authority in 2017 restrict IO loans to no more than 30% of new lending, leaving banks unable to simply extend IO repayment periods. For those who’ve financed investment properties during the past two to five yea…
