We understand that the change from Interest Only (IO) to Principal and Interest (P&I) repayments can sneak up on some customers. To further support your customers through this transition we’ll be providing more notice of their interest-only loan term expiring.
From 17 October to 18 November customers with an IO home loan term expiring between January to September 2020 will receive a new letter three to nine months before their IO loan term expires, in addition to the letter all customers receive 20 days before their first P&I repayment is due.
Helping customers through a time of transition
Providing customers with more notice may help prompt them to prepare for the change financially and to contact you for help to assess their options before they’re transitioned onto P&I repayments.
This means you may have earlier, valuable conversations with your customers to help them re-evaluate their goals and needs, ask for an IO extension (subject to credit approval) or simply let the IO term expire and revert to P&I repayments.
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