Interest Only Home Loans

Is an interest only loan right for you?

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6.24% (6.35%)*
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Interest Only Home Loans

An interest only loan allows you to only pay the outstanding interest on your home loan. The balance or principal amount of your loan will not decrease until the interest only term has ended.

Interest only home loans are popular with investors seeking to maximise any potential negative gearing benefits or maximise repayments on non-deductable debt. These are two strategies which you can discuss with your accountant or financial planner, to understand if they could be right for you.

Lenders offer interest only loans for a fixed period, usually 1 to 5 years. At the end of the interest only term, the loan will automatically revert to principal and interest (‘P&I’) repayments, over the remaining loan term. As a result, the P&I repayments over remaining term will be higher than they might have been at the commencement of the loan.

If you would like to know more about interest only loans or would like to review your existing interest only home loans, please speak with one of our qualified mortgage brokers today.

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Customer Reviews

Detailed, patient and truly cares about their clients. Get a Better Rate helped my partner and me with our first home purchase. Getting a mortgage for the first time can be stressful and overwhelming, especially with all the options and jargon. I was so impressed by how patient and helpful Peter was in explaining everything. He walked us through the entire process and was completely transparent about how he could help us and how he is funded. They are also very digitally savvy, using digital si...
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Alex Ho
Outstanding Mortgage Broker – Above and Beyond! Working with Peter at Get a Better Rate has been nothing short of exceptional. From our very first conversation, it was clear that they genuinely cared about finding the best possible mortgage solution for my situation. What truly stood out was their transparency, responsiveness, and deep knowledge of the market. They took the time to explain every step of the process in detail, patiently answered all of my questions (even the ones I thought were...
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Robbie
Peter is an ABSOLUTE legend! He worked tirelessly to help us get our loan. Which was by no stretch of the imagination an easy or straightforward lending situation. But Peter, was helpful and hard working as well as approachable and open minded ect step of the way. He made sure we got the best results and didn’t give up where many other brokers may have done so. We weren’t lending a massive amount but, as he said it’s not the size of the loan that matters it’s the quality of service that ...
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Lloyd Reardon

Interest Only Loans FAQ