• +61 (3) 5911 7000

Interest only loans 

Interest only loans are where the borrower is only required to pay the interest on the loan rather than principal. These loans tend to be popular mainly with investors who wish to make minimum repayments whilst the property hopefully grows in value or for negative gearing purposes.

Repayment savings do lessen the financial pressure in the short term however there are risks in taking a loan that does not pay off any principal.

One major disadvantage is that even though you are making repayments every month you are not reducing your mortgage. So if the property does not increase in value, it means you are not accumulating equity.

This is general information only and is subject to change at any time. Your complete financial situation will need to be assessed before acceptance of any proposal or product.

Get in touch to start a conversation.

Our mortgage broker will discuss your objectives to help you to ensure that this type of loan is the right product for you.


More FAQs

When considering a mortgage, it's advisable to research different lenders and their product offerings to determine if they provide offset accounts as an option.

Several costs come with refinancing a home loan, although some of these costs are added to your new mortgage. You can get a rough estimate of the cost to refinance your mortgage by using a refinance calculator, or engaging a mortgage broker.

On settlement day, it's important to consider tasks such as reviewing the final settlement statement, ensuring funds are available for the down payment and closing costs, and conducting a final inspection of the property before completing the purchase.