Skip to main content Skip to main navigation
Skip to access and inclusion page Skip to search input

Why choose interest-only? 

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

Access extra cash

Fund renovations, urgent repairs, or maintenance on your home or rental property. 

Get out of debt

Overcome the loss of a loved one, a reduction in income, or clear your debts.

Cope with the unexpected 

Prepare for a new baby, time off work due to illness, separation, or divorce.

Perks for investors 

Reap potential tax benefits* by offsetting rental income against your costs. 

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. 

For an investment property

On an investment property, interest-only repayments can be requested and applied to existing or new loans for up to 10 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. 

What happens when it expires?

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. 

Apply for an extension 

If you still have time left on the 5-year limit for Owner occupied or 10-year limit for Investor home loans, you can apply for another interest-only term. Just call to apply.

Reached your time limit? 

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 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 10 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.

More on property investment

Boost your home loan savings

Use an offset account

Potentially reduce the interest you'll pay by linking an offset account to your loan. 


Make extra repayments

Extra accessible funds in your loan account help reduce your loan balance.


Repayment frequency

You could pay off your loan faster with more frequent repayments.


Frequently asked questions

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.


Things you should know

Conditions, credit criteria, fees and charges apply. Residential lending is not available for Non-Australian Resident borrowers.

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and if necessary, seek appropriate professional advice. This includes any tax consequences arising from any promotions for investors and customers should seek independent, professional tax advice on any taxation matters before making a decision based on this information.

Key Fact Sheet for Home Loans

*The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation. You must seek independent tax advice to determine taxation implications that are applicable to your personal circumstances.

Credit provided by Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.