Interest only loans

  • Payment of interest only
  • Ideal for Property Investors
  • No payment of principal amount
  • Lower monthly repayments

You only repay the interest component on the principal during the term of the loan, not paying off any of the principal loan amount. As no payment is being applied off the principal amount, the monthly repayments are lower than with a principal and interest loan which does pay off the principal.

At the end of the loan period you must repay the entire principal of the loan, renew a fixed period of interest only or convert the loan to an Interest and Principal loan.

Generally this type of loan is suitable for the purchase of an investment property where holding costs are minimised until it is intended to sell the property for a capital gain.


  • Lower repayments than principal and interest therefore providing better cash-flow in the case of a rental property, letting rental income closer match repayments
  • Reduces the cost of financing a residential investment property which allows for better lifestyle or other investments


  • At the end of the Interest Only period the Principal of the loan will need to be repaid or converted to a new loan
  • Generally Interest Only Home Loans are at a higher rate than a standard home loan

With hundreds of different loan products in the market from all lenders, it can be a daunting time to go shopping for a home loan if you are doing it yourself or don't know what to look for. The benefits of why you should use a professional Time Finance Mortgage Broker are guaranteed.

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Depends on the size of your deposit, the value of the property, and your servicing capacity (based on your income and how much you are able to repay).


Most mortgage lenders will require a deposit of 20% or more of the property price. Less may be required however will require mortgage guarantee insurance in most cases


Depends on the type of loan, intrerestr rate, payment term, and whether you pay monthly or fortnighly. Use us mortgage calculators to guide you.


Every state is different and may depend on the value, whether you are building or buying an established home. Read more in our FHOG article


It is a rate that includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure that lets you compare loans from differengt lenders on a fair comparison.


This 'in principle approval' is usually valid for 3 months. Gives you the confidence on how much you can borrow before your purchase a property.


The cost of Stamp Duty varies between States and Territories. Subject to your personal loan circumstances, the cost of stamp duty can be included in the loan amount you borrow.

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