When does it make sense to get an interest-only mortgage?

[@lindsayives4915]

Its great when property goes up in price you can sell make profit or borry equity made or witch to repaymnt one .or just enjoy a fab house luve as yiurs for aa king just like a rental

[@rabindersingh1886]

Great video and well explained. Thank you!

[@MortgageBrokerAustralia]

Glad it was helpful!

[@jacqepapara7898]

Awesome advice as usual guys thanks heaps👍😃

[@MortgageBrokerAustralia]

Thanks for watching

[@floydphillipsco]

Great commentary...

[@MortgageBrokerAustralia]

Thank you Floyd!

[@PaulDickson7]

Any debt is bad debt. Don't be a debt slave to Central Banks. The market manipulation in Australia now is at peak greed levels never seen before in this country. Sell everything you have, downsize, do what ever you can to avoid these unpresidented debt levels. That $450K house from 2019 that is now worth $700K in 2023. Don't fall for it. That house used to be $130K 20 years ago. This is the bigger housing bubble and what comes up must come down. Protect yourself and don't become a debt slave

[@MortgageBrokerAustralia]

Thank you for sharing your perspective. We understand that the housing market has experienced significant changes over the years, and everyone has their own viewpoint on how best to approach property investment and debt. At Hunter Galloway, our aim is to guide our clients through the mortgage process, ensuring they understand their options and are comfortable with their decisions. We believe that with the right advice and support, buying a home can be stress-free and uncomplicated. We respect your viewpoint and are here to support all Australians in making informed decisions about their home buying journey.

[@kienhwengtai8113]

These loans are the type of loans that caused the GFC in 2008/9.

[@MortgageBrokerAustralia]

Thanks for watching

[@TheJoccara]

No it was called sub prime mortgage which was provided to lots of 'anyone' who wants to borrow even to someone with no stable jobs. Interest only loan here is not that kind of loan. Banks in Australia do not lend money to anyone u need employment and good credit history and deposit.

[@sirdaddytworolls4735]

These loans are basically just as bad, it means a giant mass of the population will default on loans if interest rates keep rising, considering the uk has 40% interest only adjustable rate loans

[@TheJoccara]

@@sirdaddytworolls4735 you pay less amount monthly with interest only loan compared to principle and interest loan. How come does paying less monthly make you default? won't it actually help you avoid default? with interest rate hikes all variable loans are affected equally arent they? Can you explain why interest only loan is only bad one?

[@eduardojrespejo7928]

Hello, Awesome video. Fo I pay less to the bank on my mortgage when I switched from principal+interest to interest only? I am converting my 2br apartment into a rental (through a property management)

[@MortgageBrokerAustralia]

Thank you for your kind words about the video! When you switch from a principal + interest mortgage to an interest-only mortgage, your monthly payments will typically be lower, as you'll only be paying the interest portion of the loan. This can be an attractive option for some borrowers, especially those who want to maximize cash flow or anticipate a rise in property value. However, it's essential to consider the long-term implications of an interest-only mortgage. During the interest-only period, you won't be paying down the principal balance of your loan. This means that once the interest-only term ends, you'll still owe the original principal amount, and your future payments will likely be higher to compensate for the principal repayment. As you mentioned that you're converting your 2-bedroom apartment into a rental property, an interest-only loan might make sense for you. It could potentially lower your monthly mortgage payments and increase your rental income, providing you with additional cash flow to cover property management expenses and other costs. Nevertheless, it's crucial to weigh the pros and cons of an interest-only mortgage and consider your long-term financial goals. Speak with a financial advisor or mortgage broker to discuss your specific situation and determine if this option is the best fit for your needs.

[@nichyse]

Great explainer!

[@MortgageBrokerAustralia]

Thanks for watching

[@lionheart1727]

Do you do SMSF lending at Hunter G.?

[@MortgageBrokerAustralia]

No we don't sorry

[@JJ-mc8lu]

These loans are pushed on to poor buggers who can least afford them!

[@MortgageBrokerAustralia]

Thanks for watching JJ