Interest Only home loan repayments
An Interest Only term reduces your repayment, so you’ll only be repaying your loan interest, not your home loan balance.
A period of interest only repayments over the life of your loan, could help you manage your finances when changes in your circumstances mean you need to maximise your cash flow. Find out more about the benefits of an interest-only home loan.
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Access extra cash
Fund renovations, urgent repairs, or maintenance on your home or rental property.
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Get out of debt
Overcome the loss of a loved one, a reduction in income, or clear your debts.
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Cope with the unexpected
Prepare for a new baby, time off work due to illness, separation, or divorce.
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Perks for investors
Reap potential tax benefits[#] by offsetting rental income against your costs.
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How do I apply?
Whether you already have a home loan with us or are looking to apply for a new loan, you can request interest-only repayments on any of our variable or fixed rate loans.
For the home I live in
As an owner-occupier, you can request interest-only repayments on an existing home loan or for a new mortgage for up to 5 years over the life of the loan.
Existing loan applications: call 132 558, 8am-8pm, Mon-Fri and 9am-6pm, Sat-Sun (Sydney time) or request a callback.
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Call 132 558
For an investment property
Investment loans offer interest only repayments up to a maximum of 15 years, subject to approval and eligibility criteria.
Existing loan applications: call 132 558, 8am-8pm, Mon-Fri and 9am-6pm, Sat-Sun (Sydney time) or request a callback.
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Call 132 558
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What happens when it expires?
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You'll automatically switch to Principal and Interest repayments when your interest-only repayment period ends unless you're eligible to apply for another term.
If you have not yet taken the total maximum interest only period that applies to your loan type, you may be able to extend the Interest Only repayment term, subject to approval. You’ll need to start the process well in advance of your Interest Only expiry date and provide details of your income, expenses and liabilities. Just call 132 558 to apply 8am-8pm, Mon-Fri and 9am-6pm, Sat-Sun (Sydney time).
Reached your time limit on interest only, but don't want to switch to Principal and Interest? You could close out your current loan and apply for a new one. Call 132 558 to discuss 8am-8pm, Mon-Fri and 9am-6pm, Sat-Sun (Sydney time).
Interest-only and investors
When investing in property, an interest-only loan can be your best ally. Using the interest repayments to offset rental income and maintenance costs could come in handy at tax time. With up to 15 years available on interest-only repayments for Investment loans, choosing this option could go a long way to help you build a property investment portfolio[#].
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Boost your home loan savings
More repayment options to suit your home loan needs
Use an offset account
Potentially reduce the interest you'll pay by linking an offset account to your loan.
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Variable with offset
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Make extra repayments
Extra accessible funds in your loan account help reduce your loan balance.
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Redraw extra funds
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Repayment frequency
You could pay off your loan faster with more frequent repayments.
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Repayment calculator
[BVAR#wbc-public-domain]/home-loans/calculator/mortgage-repayment
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Frequently asked questions
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What’s the difference between Interest Only and Principal and Interest repayments?
When you choose to make interest-only repayments on your home loan, you’re repaying the interest portion of the mortgage only. You’re not repaying the actual amount that you’ve borrowed. While with principal and interest repayments, you’re repaying both the interest and the loan balance.
Can a fixed rate home loan have interest-only repayments?
Yes. Interest-only repayments are available on fixed rate loans. However, you can only change the repayment type once the fixed rate term has expired. Break costs will apply if you attempt to change the repayment type during a fixed interest period.
What should I be aware of with an interest-only loan?
There are benefits to making interest-only repayments. However, it would be wise to be mindful that:
- Interest-only repayments are available for a set period over the life of the loan. Up to 5 years on an Owner-occupied loan and up to 15 years on an Investment loan, subject to approval and eligibility criteria
- Principal and interest repayments following an interest-only period will be higher than if you’d been paying both the principal and interest from the start
- Equity will build at a slower pace during the interest-only period as you’re not repaying the loan balance
- Paying interest-only for a period over the life of your loan means you’ll pay more interest overall than if you’d been paying both the principal and interest.
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We're here to help
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Got questions? Applying for a new interest-only period?
8am-8pm, Mon-Fri and 9am-6pm, Sat-Sun (Sydney time)
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Call 132 558
Find a lender
Call your local home lending expert or visit your local branch.
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Find your nearest branch
[BVAR#wbc-public-domain]/locateus/
Things you should know