The Interest Only Home Loan is designed for borrowers who want to pay interest-only on their loan, rather than interest and principal. In addition to interest-only repayments, borrowers are able to make additional repayments at any time, with no limits or penalties. This, combined with the interest only repayments, could allow some borrowers to pay down their loan quickly.
The repayments can also be withdrawn through the attached redraw if needed for another purpose. Borrowers have the flexibility to choose whether they make their regular interest payments weekly, fortnightly, or monthly.
The Interest Only Loan from The Mac may suit investors are attracted to lower repayments and the potential tax benefits associated with interest-only loans. Unlike many other loans of its type, there is no limit to the interest-only period, however, borrowers should be aware that the interest rate is very high.
The Mac Interest Only Home Loan differs from many other interest-only loans in that its variable loan terms are up to 30 years. This may make it particularly attractive to investors who want to delay the payment of the principal sum and use the funds elsewhere. Its benefits include its additional repayment function, redraw facility and lack of ongoing fees. However, it comes with its downsides too, primarily the very high interest rate.
Borrowers deciding on whether or not to go with The Mac Interest Only Home Loan should weigh up the cost of the high interest rate and principal repayments down the track against the benefits of the no ongoing fees and flexibility an interest-only loan offers.
The Mac Interest Only Home Loan is an interest-only loan with a high variable rate.