When you pay principal and interest repayments, each repayment goes towards paying off both the amount borrowed to buy the property (the ‘principal’) as well as covering the interest. By the end of the loan term (which can be up to 30 years), both the amount borrowed and the total amount of interest owed will be repaid.
It’s important to weigh up the following factors when requesting to pay interest only:
It’s important to understand the loan repayment option you are planning to request and how this impacts you. Keep in mind the above considerations when requesting interest only repayments. It’s important to ask yourself first if you’ll be able to afford the higher repayments when the interest only period ends and if the short-term benefits of lower repayments will outweigh any long-term costs.
Conditions, fees and credit criteria apply.
Before making a decision, it’s best to read the terms and conditions:
Please read these documents and keep a copy. You can request a paper copy at a branch. The information on our website is prepared without knowing your personal financial circumstances. Before you act on this, please consider if it’s right for you. If you need help, call 13 33 30.