Interest Only Home Loans
If you’ve ever purchased an investment property, chances are you’re familiar with the concept of an interest only home loan. Offering lower repayments and many of the same features as traditional loans, interest only loans are particularly suitable for investors.
However interest only loans are also suitable for general home buyers, refinancing an existing loan, as bridging finance or to pay for home renovations.
How it works
A principal and interest loan is still the most common type of home loan. Loan repayments include interest and principal, allowing home owners to repay the loan in full by the end of the loan term, assuming they make the minimum repayments.
With an interest only home loan, repayments only cover the interest component. The principal is repaid in full at the end of the loan term.
Because borrowers only repay the interest component, interest only loans have lower repayments than principal and interest loans.
- lower repayments
- loan terms typically between two and five years
- repay principal in full at the end of the loan term
Intercorp Financial Strategies is one of Australia’s most innovative mortgage brokers, the statement “A unique personal financial experience” reflects our clients experience when dealing with our company. We have developed a streamlined process for home loan and finance applications that will save you money and time on your refinance or purchase home loan needs. We will look at your entire financial portfolio, and can also assist with your insurance, financial planning and accounting needs if required – but first and foremost we are experts at getting your home loan approved for you.
Intercorp Financial Strategies mortgage brokers have access to sophisticated software through their association with Choice Aggregation Services which will assist you in selecting the most appropriate home loan. We have access to over 30 lenders and 300 products so why waste time researching on the internet when you could get in touch with us and allow us to do the leg work for you.