Recently I was having trouble letting my small property in Kalgoorlie. I bought this property to live in and did for 4 years before moving to FIFO work. I have a girlfriend pregnant with twins, so before finance stress came knocking at the door, I called the bank asking for a genuine interest only period to help my cashflow over the next year. I have over paid my mortgage by 15% for the past 3 years (until property was empty).
The bank crunched the numbers and to my shock declined my one year application for interest only, as they are now 'holistically lending'. The increased repayments are not even above my usual payment plus 15% when the property is let.
The property is now let and I no longer require the assistance, since the New Year things have really picked up for me on a number of fronts and that is great. I find it appalling that banks are no longer allowing interest only as relief for genuine mortgage users and have seemingly all but turned there back on there existing loyal customer base.
I would say my income is middle to high on the wider job market and I really feel for those out there that maybe are at a tight point in their lives, not necessarily due to over spending or excessive borrowing on investment properties or cars etc. This is going to hit very hard with the wide ranging ferocity if this small experience of mine was anything to go by.
