Interest Only Repayments

Most investors choose an investment home loan with the option to make interest only repayments. This is because it is more convenient to calculate your overheads such as repayments and income, as well as the expectant short-term ownership of an investment compared to an owner-occupier. Interest only repayments are exactly that: you only pay the interest each time you make a repayment and therefore you never reduce the principle or the loan balance. Some owner-occupier mortgagees choose to make interest only repayments if they are in a tight financial position but because the balance does not reduce the loan term may become extended which means you will pay more interest.

The table below lists variable rate home loans (banks only).