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Interest only home loans are generally utilised by investors and as a result the principle balance borrowed is not reduced. By making interest only repayments the principle balance is not repaid and generally the loan reverts to a principal and interest loan at the end of the interest only period. Interest only home loans are similar to fixed rate home loans and are usually fixed for a term of 1 – 5 years.

In most cases interest only home loans are not suitable for owner occupier home owners due to the fact that there is no reduction in principal resulting in a reduced building of equity in the property, although this option may be used when owner occupiers are experiencing financial difficulties.

Pre-Approval