We are currently reviewing variable interest rates for our existing customers following the RBA rate cut. We will make an announcement on how this will affect your loan in the coming days.

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Interest-Only Home Loans

Q: LCA - FAQ - How do I compare interest-only home loans?

You can compare our interest only home loan options here .

An interest-only home loan will leave you only paying interest for the first few years of your loan.

Multi-award winning

Variable Home Loan

6.29

p.a

Rates from***

6.16

p.a

Comparison rate*

Discounted home loan rate***
Offset sub-account available for +0.10%^
No monthly or ongoing fees
Free redraw on any additional repayments
Pay your bills via BPAY
Access your account via Smart Money app

Do I Qualify?

Our Google Rating

4.5

481 reviews

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

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Loan amount

Loan reasons

Purchasing

Refinancing

Building

Loan type

Owner Occupier

Investment

Home Loan	Interest Rate	Comparison Rate	Monthly Repayment	Product Features	Details
Variable Home Loan Owner Occupied • Interest Only • Up to 80% LVR Most Popular	6.29% p.a.	6.16% p.a.	$2,621	Discounted home loan rate^* 20% deposit minimum Offset sub-account available for +0.10%^{^} No monthly or ongoing fees Fee free redraw on any additional repayments Pay your bills** via BPAY	More details Do I Qualify?
Green Home Loan Owner Occupied • Interest Only • Up to 80% LVR	6.24% p.a.	6.41% p.a.	$2,600	Discounted 5yr green home loan rate^~~ 20% deposit minimum Offset sub-account available for +0.10%^{^} No monthly or ongoing fees Fee free redraw on any additional repayments Pay your bills via BPAY	More details Do I Qualify?
Solar Home Loan Owner Occupied • Interest Only • Up to 80% LVR	6.24% p.a.	6.41% p.a.	$2,600	Discounted 5yr solar home loan rate^~~~ 20% deposit minimum Offset sub-account available for +0.10%^{^} No monthly or ongoing fees Fee free redraw on any additional repayments Pay your bills via BPAY	More details Do I Qualify?

2023 WeMoney - Best for Value (Variable)

2024 Mozo - Expert's Choice for Best Green Home Loan

2022 WeMoney - Outstanding Customer Service

Our home loan products are recognised & awarded by the Australian financial industry

View all home loans

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.

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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.

Rates

Repayment Type

Interest Only

Maximum LVR of 80%

Product	Interest rate from	Comparison rate
Variable Home Loan	6.29% p.a.***	6.16% p.a.*
1 Year Fixed	6.49% p.a.*+	6.09% p.a.*
2 Year Fixed	6.39% p.a.*+	6.11% p.a.*
3 Year Fixed	6.39% p.a.*+	6.14% p.a.*
1 Year Fixed Investor	6.69% p.a.*+	6.37% p.a.*
2 Year Fixed Investor	6.59% p.a.*+	6.39% p.a.*
3 Year Fixed Investor	6.59% p.a.*+	6.41% p.a.*

Maximum LVR of 90%

Product	Interest rate from	Comparison rate
Variable Investor Home Loan	6.49% p.a.+	6.41% p.a.*

Key Features

Up to 30 years loan term	Yes
Available for refinance or purchase	Yes
Flexible repayment options	Yes

Fees

Application fee	$0
Ongoing fees	$0
Security assessment fee	$230
Government fees	At cost
Settlement fee	$300
Optional rate lock fee	$350*^

Get ahead with the right home loan

Get a pre-approval decision quickly.

Do I Qualify?

As seen on...

"We found that loans.com.au still had a very competitive rate and we were happy with the service"

Laura

Home loan customers

Meet the team who’ll start saving you thousands

We have a friendly team of Australian-based lending experts here to help you from application to settlement, so you can get a better loan.

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.

Apply Online

How it works

Frequently Asked Questions

How do I compare interest-only home loans?

You can compare our interest only home loan options here.

Can you make additional repayments on an interest-only loan?

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.

How long are interest-only loans?

A loan can be on interest only repayments for a period of 1-5 years.

What do I need to know about interest-only home loans?

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)

Home loan FAQs