Problems with interest rates and repayments? Ask for home loan help.
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As the name suggests, and interest only home loan allows you to repay only the interest part of the loan. This is particularly useful for borrowers who wish to delay the costs of purchasing a property.
For home owners buying a second home, or those wishing to purchase an investment property, an interest only loan offers lower repayments so that the extra cashflow can be directed elsewhere.
Usually a loan consists of principle and interest, but interest only loans only require you to make the interest repayments. The interest only period is fixed usually for between one year and 10 years. Some loans will allow you to repay part of the principle during the fixed term. Once the fixed term ends, you can either revert to a principle and interest loan, or pay the loan off in full.
All loan types offer varying advantages, and come with some drawbacks, so talk to a local mortgage broker to find out if an interest only loan is right for you.
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