How Much Could You Save
| Details | Interest Only | Principal & Interest |
|---|---|---|
| Loan Term | 5 years | 30 years |
| Loan Amount | $800,000 | $800,000 |
| Interest Rate | 5.5% | 5.5% |
| Interest Paid | $3,667 | $4,542 |
| Savings | $875 | $0 |
You could save $10,500 each year, which is $875 each month during the interest-only period.
It’s important to consider:
- Repayments will increase once the interest-only period ends, as it will switch to Principal & Interest.
- Some lenders have stricter eligibility criteria for interest-only loans.
- There is a risk of negative equity since you’re not paying down the principal.
- More interest is paid over the loan’s life because the principal remains unchanged during the interest-only period.
Interest Only Loans Are Great For
Property Investors
- Maximise cash flow to fund your next investment
- Reduce tax liabilities with negative gearing
- Finance property improvements to increase rental yield or value
Home Builders
- Manage costs during construction
- Lower repayments during the building phase
- Get flexible repayment options
If you’re experiencing financial hardship, switching to an interest-only payment can help lower your monthly obligations and help you regain your financial footing.
Why Choose Home Loan Experts?
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High Borrowing Power:
Borrow up to 95% of the property value for owner-occupied or investment properties
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Flexible Terms:
Interest-only periods for up to 10 years with the possibility to extend based on your circumstances
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Competitive Rates:
Get access to lenders with minimal or no rate premium for interest-only loans
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Extra Features:
Choose to include options like offset accounts and additional repayments to manage your loan.
Hear From Our Customers
Better rate for an investment interest only loanI reached out to the team via email requesting a better rate for an investment interest only loan. David not only managed to get me a better rate with the same lender within 2 days of my email, he also checked if I could get a better rate for my other loans.
Great service! Home Loan Experts don’t only get you the home loan, they monitor your interest rate and negotiate a lower rate with the bank. Great service!
Even now, 4 years after we bought our home, Home Loan Experts still assist us in keeping our interest rate low and checking we are still getting the best deal. I highly recommend using Home Loan Experts!
4.9 out of 2,000+ reviews
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Award-Winning Expertise At Your Service
Ready to Save on Your Mortgage?
Our mortgage experts will find you the right interest-only loan for your situation.
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Start With A Free Assessment
Complete our online assessment form to see if you qualify for an interest-only loan. Call us on 1300 889 743 to speak with an expert today.
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Understand your situation.
One of our mortgage experts will contact you to assess your situation better.
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Get The Right Interest-Only Loan
We’ll get you the right interest-only loan that offers the flexibility of lower repayments.