Interest Only Home Loan

Interest Only Home Loan

With interest only home loans your repayments are lower than a traditional loan.  They only cover the interest component, leaving you with more funds available.

Loan Terms
Interest only home loans are usually a short term option for homeowners.  Generally this type of loan would be suitable for up to five years.  It is also more useful for larger loan amounts as the savings will be more substantial when compared to a relatively small mortgage.  After the agreed interest only period is up, the loan reverts to a regular principal and interest and the full loan amount will need to be repaid.

Repayment Options
Most lenders will allow you to repay your interest only home mortgage loan monthly, fortnightly or even weekly.  Remember, when you get half way through a home loan term and you're still faced with high interest charges plus the full value of the original loan to repay, the interest only loan may not seem quite so attractive.

Loan features
You can choose fixed or variable loan options, you have reduced repayments, no account keeping fees and sometimes an interest in advance option

Interest Rate
The interest rate can be either standard variable or fixed rate. With an interest only home loan, repayments only cover the interest component. The principal is repaid in full at the end of the loan term.

Because you are only repaying the interest component, interest only loans will have lower repayments than principal and interest loans. 


For more information about interest only home loans, you need to talk to the experts.  Call us today and talk a local mortgage broker.  Call today on or submit your details via our website.

 

With interest rates coming down, now is the time to speak to a mortgage broker. We know which banks are dropping rates and who is raising.

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