Convert or extend an interest only period

If your client would like to convert their repayments from principal and interest (P&I) to interest only (IO) or extend their current IO term, they’ll need to undergo a credit assessment. 

The following documents are generally required: 

• A cover letter from you outlining the instructions
• Completed Variation Application form signed by your client(s)  
• Updated financial/supporting document 
• Completed serviceability calculator. 

The application will need to be assessed and approved by the Credit team and will be subject to the requirements of our home loan credit policy.

You may be required to order a valuation for an interest only application, depending on the loan to value ratio (LVR) at origination. 

• If the LVR at origination was more than 65%, a new valuation will be required 
• If the LVR at origination was 65% or less, a valuation may not be required.  

Our variations team can assist you with your client’s technical variation application. To submit a variation, email all necessary documents to the variations team inbox at mortgagevariations@macquarie.com. 

Once approved, your client’s loan details will reflect the updated repayment type and expiry date.  A variation acceptance may be required from your client before the conversion is done depending on their loan product type.