Interest Only Loans
Use our service for the next purchase, or refinance, of your home or investment property and receive
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Information on Basic Variable Interest Rate products Information on loans that have a discounted interest rate for an introductory period Information - 100% Interest Offset mortgages
Information about Standard Variable Interest Rate products Information about loans typically sought by investors Information about Interest Only loans
Information on Line of Credit 'Equity' facilities Information about loan packages with interest rate discounts Construction loan information
Commercially secured loan information Information on Fixed Interest Rate mortgages Low Document/Non Conforming loans - for those with unsubstantiated income or credit defaults

Interest Only Loans

Interest Only loans are primarily used by investors that want to keep their investment debt and the associated tax deductable interest as high as possible. This frees up money that can then be used to pay off personal debt, where there is no tax deduction, as quickly as possible. Interest Only loans are rarely used where loans of personal/domestic purposes are involved.
Line of Credit facilities are usually 'evergreen' (unspecified loan term and no amortisation schedule) and can therefore be interest only for an unspecified term. This makes them a popular choice for many investors.
Most other types of loans amortise (principle reduction) over a set 30 year term instead. These usually offer a maximum interest only period of five years from the start of the loan (settlement) however some lenders will go as high as 15 years depending on the financial position of the applicant. In such cases the interest only repayments automatically revert to principle and interest repayments after the nominated interest only period and the loan then begins to amortise.
The interest only period on an amortising mortgage is only available at the very beginning of the loan and must be nominated by the borrower prior to settlement. Many investors take advantage of a 5 year interest only period with one lender and then refinance so that they can get another interest only period. Quite often interest only is used in conjunction with a fixed interest rate period as many investors like to plan ahead and appreciate the security of a regular repayment amount.

Call or email for lender's comparison rate schedules or specialised Mortgage Software generated comparisons that details relevant features of competing loan products side by side and also gives an AAPR (average annual percentage rate) which is an indication of the 'true' cost of the loan over a seven year term.

The above Interest Only Loan content is information only and should not be construed as financial advice.

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