Interest Only Home Loans
Assured offers a wide range of competitive interest only home loan products to help you manage your cash flow and investment strategy.
Understanding Interest Only Home Loans
Lower Initial Payments
Interest only payments are typically lower than principal and interest payments, helping you manage cash flow better.
Investment Strategy
Popular among investors who want to maximize cash flow for other investments or property purchases.
Flexible Terms
Interest only terms typically range from 1-5 years, with some lenders offering up to 10 years.
How Interest Only Loans Work
Interest only home loans are mostly utilised by investors who are not concerned about paying their loan off quickly. When making interest only payments, the initial home loan balance stays the same as there is no reduction of the principal.
The home loan reverts to principal and interest at the end of the fixed term, ensuring you eventually build equity in your property.
Interest only loan terms are usually only for 1-5 years, but Assured has access to products that allow the borrower to obtain an interest only loan for up to 10 years.
Key Features
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Lower monthly payments during interest only period
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Principal balance remains unchanged
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Automatic conversion to principal and interest
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Flexible terms from 1-10 years
Who Are Interest Only Loans Suitable For?
Property Investors
Most commonly used by investors who want to maximize cash flow for other investments or property purchases. They're not concerned about paying off the loan quickly and focus on capital growth.
Owner Occupiers in Financial Difficulty
Generally interest only loans are not suitable for owner occupier home buyers as making interest only payment does not assist in building equity in the home. However, owner occupiers may choose to utilise the interest only option in times when they may be experiencing financial difficulty, to help them get through a short term problem.
Why Choose Assured for Your Interest Only Loan?
Established Since 1988
Over 35 years of experience helping Australians secure smarter home loans.
Access to Hundreds of Loans
We have established relationships with many reputable lenders and have access to hundreds of loans from major banks and financial institutions.
Expert Advice
Our friendly and experienced consultants offer expert advice to help you get the right loan to suit your needs.
At Assured, we make things simple. As one of South Australia's top mortgage advisers, we have established relationships with many reputable lenders and have access to hundreds of loans from major banks and financial institutions. Our friendly and experienced consultants offer expert advice to help you get the right loan to suit your needs.
Frequently Asked Questions
What happens when the interest only period ends?
The loan automatically reverts to principal and interest payments, which will be higher than your previous interest only payments.
Can I extend the interest only period?
This depends on your lender and circumstances. Some lenders may allow extensions, but it's not guaranteed.
Are interest only loans more expensive?
Interest rates are typically similar to principal and interest loans, but you'll pay more interest over the life of the loan.
Can I make extra payments during interest only?
Most lenders allow extra payments, which will reduce your principal and potentially lower your future payments.
Ready to Explore Interest Only Home Loans?
Let our experts help you find the right interest only loan to suit your investment strategy and financial goals.