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Interest Only Home Loans

Does an interest only loan meet your goals and objectives?



Today's Lowest Interest Only Investment Loan Interest Rates

Last updated 6:00am, 7th Jul 2022

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 strategy 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 with one of our qualified mortgage brokers today.

Interest Only Loans FAQ

Can I extend my interest only period?

Can you request an extension to your interest only period, although most lenders will limit you to a maximise of 5 years. You can refinance your loan to a new lender, requesting a new interest only term.

Can I make principal repayments?

Yes, most lenders will allow you to make principal repayments above your minimum interest only payment. Speak with your lender or your mortgage broker to check the process and policies of your home loan.

Is an interest only loan more expensive?

Typically, an interest only loan has a higher interest rate than a principal and interest loan. Interest rates will vary between lenders and you should ensure you compare loans from a range of different lenders to find a suitable product.

If you would like assistance, our qualified mortgage brokers would be glad to help.

Should I make interest only repayments, on my investment loan?

Whether interest only loan repayments the right option, depends on an individual’s strategy and circumstance. It is always recommended to seek advice from your accountant or financial planner about your financial goals.

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Customer Reviews

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Allison Hall

Peter at Get a Better Rate was fantastic. Through out our loan process, he was happy to answer any questions we had and always got back to us so quickly. His knowledge about mortgages was outstanding and therefore, he was able to get our loan processed in a fast and efficient manner. I have already recommended Peter to friends who needed assistance with their mortgages and would recommend Peter to anyone for their mortgage needs.
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Mitchell Meldrum

We recently refinanced with 'Get a better rate', Peter was professional, efficient and provided an exceptional amount of support and knowledge. I highly recommend Peter for anyone looking at refinancing or obtaining a loan for the first time.
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Neda Molavi

Professionalism and knowledge pared with patience and support. For a person like myself with no experience, Peter was there for each and every step, went above and beyond to provide help and support, nothing was delayed due to flawless management of the process. All questions are answered and responses come very quick. I believe Peter is a broker who genuinely cares about the client. Thanks for helping me buying my dream house.
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Connor O'Meara

Peter came highly recommended by a friend. We found him to be extremely professional, excellent and prompt with communication and patient with our many first home buyer stupid questions. A lot of hand holding, but he was always happy to help. Thanks for your help.

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