This could be a stupid question but since things are tight for me I'd like to analyse and pre-empt as many risks as possible, especially with all these serviceability changes taking place.
So as you know, if you want to extend an IO only loan you need to do a refinance. Basically start all over again - show proof of income etc.
Would it serve any regulatory purpose to also apply this to the fixing of existing variable loans? Right now I have most of mine as variable, is it possible one day that they could say effective immediately, you'd have to refinance in order to fix it? Basically - whether you fix it or not would need to be a decision you made up front.
As I said...probably a stupid question, but thought I'd ask anyway...:)
Would there be any regulatory benefit to preventing locking in of rates?
So as you know, if you want to extend an IO only loan you need to do a refinance. Basically start all over again - show proof of income etc.
Would it serve any regulatory purpose to also apply this to the fixing of existing variable loans? Right now I have most of mine as variable, is it possible one day that they could say effective immediately, you'd have to refinance in order to fix it? Basically - whether you fix it or not would need to be a decision you made up front.
As I said...probably a stupid question, but thought I'd ask anyway...:)
