Interest Only Home Loans

Today's Lowest Interest Only Investment Loan Interest Rates

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.

Monthly Repayment Comparison

Customer Reviews

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Scott Carroll

The best mortgage broker in Sydney CBD! Peter is an excellent mortgage broker who went the extra mile for me. As a first home buyer, I found the home loan process extremely stressful and confusing. Peter alleviated this by guiding me every step of the way, making me feel informed and confident in my choices. I would 100% recommend his services to anyone looking for a home loan!

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Matthew Jones

Peter was fantastic. I tried to refinance with my existing private banking relationship and was turned down. Got introduced to Peter, I sent him some docs and he helped me complete paperwork and I got close to twice the amount I was looking for. Could not have done it without him. Quite an unbelievable difference and would recommend him to everyone.

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Nick Bell

Peter worked hard to get us a great rate and dealt promptly with any issues with lender along the way.

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Ainslie Hie

The road to purchasing a family home was a long one for us (several years), and I lost count of how many pre-approvals Peter prepared us, or how many questions he patiently answered. Peter is helpful, knowledgeable, patient, and professional, and I would not hesitate to recommend his service to other home buyers—top-notch service!