Hi All
I started property investment about 4 years ago. I now own 3 properties in Auckland, and everything is going well. However, all 3 loans are on interest only, but that will start to change at the end of 2020 (and roll over to P&I). Put simply, I can not afford to pay P&I, the rents will simply not cover it.
I was told early on that I could keep my mortgages on interest-only by simply refinancing at another bank when the interest only term expires (5 years). My mortgage broker now tells me, this is highly unlikely due to the banks reluctance to hand out interest only Mortgages.
My questions areā¦.is this true? Has anyone here got the same problems, and what did you do?
If this is accurate info, I am in a situation where I may need to sell at least 2 of the homes, or maybe all 3. Any advice would be most welcome.
Thanks in Advance
Johny
I started property investment about 4 years ago. I now own 3 properties in Auckland, and everything is going well. However, all 3 loans are on interest only, but that will start to change at the end of 2020 (and roll over to P&I). Put simply, I can not afford to pay P&I, the rents will simply not cover it.
I was told early on that I could keep my mortgages on interest-only by simply refinancing at another bank when the interest only term expires (5 years). My mortgage broker now tells me, this is highly unlikely due to the banks reluctance to hand out interest only Mortgages.
My questions areā¦.is this true? Has anyone here got the same problems, and what did you do?
If this is accurate info, I am in a situation where I may need to sell at least 2 of the homes, or maybe all 3. Any advice would be most welcome.
Thanks in Advance
Johny
Comment