Interest-Only Home Loans
A fully featured Variable Bold Home Loan which gives you flexibility
Variable Bold Investor Bundle
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Borrow up to 80% LVR -
Offset sub-account available
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Interest-Only (IO) repayments
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No transaction fees for redraws
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No monthly or ongoing fees
An Interest only term reduces your repayment, so you’ll only be repaying your loan interest for an agreed interest - only period of 1- 5 years.
At the end of the interest only period, your loan will change to a 'principal and interest' loan where you'll start repaying the amount borrowed, as well as interest on that amount, resulting in higher repayments.
Our home loans
| Home Loan | Interest Rate | Comparison Rate | Monthly Repayment | Product Features | Details |
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Who is best suited to an interest-only loan?
Interest-only loans can be a great option
For investors, or for home buyers who’d prefer to spend money on making improvements to the property rather than paying off the principal at the beginning of the loan. There may also be tax benefits for investors who choose an interest only loan.
Why choose a Interest-Only Home Loan?
Interest only period
Enjoy lower repayments during the interest-only period of your home loan so you can save extra cash or renovate.
Perks for Investors
Reap potential tax benefits by offsetting rental income against your costs, and use the extra cashflow to renovate your property.
We'll switch you
We will notify you of the change, the new repayment amount and automatically transfer your loan to principal and interest.
Unexpected events
Temporarily reducing your home loan repayments could help ease some financial pressure, when life's unexpected events happen.
A home loan that gives you budget confidence
Here’s your new offer
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Home loan customers
Meet the team behind Australia's Home of Loans
We have been making it easier for Aussies to access great value home and car loans with our award-winning rates, fast approval and seamless digital experience.
Our home loan application process
Application
Simply fill out your home loan application online by entering some of your details, or chat to one of our friendly lending specialists over the phone and they can complete your application for you.
onTrack
After your application is complete, use our system we call onTrack on your desktop or device to add your documentation such as payslips and bank statements, and track the progress of your application.
Speak to specialist
You will then have an appointment with one of our lending specialists to organise your preliminary approval of your loan, and help you progress through the home loan approval process through to settlement as quickly as possible.
Signing document
Check onTrack to received your final approval, mortgage documents and loan agreement. You must sign these and return them in to onTrack.
Settlement
Your loan will settle, and you’ll enjoy your new loan rate.
Access your account
Once settlement is complete, we will send your login credentials to start managing your payments in the Smart Money app.
Frequently Asked Questions
You can compare our interest only home loan options here.
Yes, you can make additional payments on an interest-only loan. If the interest-only loan is on a variable interest rate, you can make unlimited additional repayments. If the interest-only loan is on a fixed rate, you can make additional repayments of up to $10,000 per fixed year without penalty.
A loan can be on interest only repayments for a period of 1-5 years.
The main thing to consider with an interest-only home loan is if it is really best for your financial situation. While interest-only home loans are a great option for investors and home-owners alike, they are typically better suited for investors for tax purposes. At the end of your interest only period, you will need to start paying back the principal as well as the interest on your loan, and you can expect your principal and interest repayments to be higher as you are paying back the principal over a shorter amount of time (ie. 25 years vs 30 years)
An offset sub-account is linked to your home loan and helps reduce the interest you pay. Instead of earning interest like a regular savings account, the balance in your offset reduces the portion of your loan that accrues interest. This can help you pay off your loan faster and save on interest costs.
Key things to know:
- It's a sub-account of your loan, not a separate deposit account.
- Funds in the offset sub-account are not covered by the government deposit guarantee.
- The offset cannot exceed your home loan balance.
If you have any questions, our friendly team is here to help!
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