What is an Interest Only Loan?
The latest in home loans news
Mortgage stress affecting a third of borrowing owner-occupiers
About one third of borrowing owner-occupier households are in mortgage stress.
Some lenders allow you to switch from paying back both the principal and interest on a loan to just paying the interest for a limited period of time. This can help to reduce your loan’s repayments so they’re more affordable in the short term. However, it also means you won’t be reducing the debt you owe, so it may ultimately take longer for you to fully pay off your loan.