Interest Only Home Loans
Is an interest only loan right for you?
Offset Account
Redraw
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.

