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Our home loans

  • Discounted home loan rate
  • Offset sub-account available for +0.10%^
  • 20% deposit minimum
Rates from***
6.54
%
p.a.
Comparison Rate*
6.56
%
p.a.
Monthly repayment#
$3,174
Rates from***
6.54
%
p.a.
Comparison Rate*
6.56
%
p.a.
Monthly repayment#
$3,174

Monthly repayment#
$3,174
  • Discounted green home loan rate
  • Offset sub-account available for +0.10%^
  • 20% deposit minimum
Rates from~~
6.49
%
p.a.
Comparison Rate*
6.67
%
p.a.
Monthly repayment#
$3,157
Rates from~~
6.49
%
p.a.
Comparison Rate*
6.67
%
p.a.
Monthly repayment#
$3,157

Monthly repayment#
$3,157
  • Discounted solar home loan rate
  • Offset sub-account available for +0.10%^
  • 20% deposit minimum
Rates from~~~
6.49
%
p.a.
Comparison Rate*
6.67
%
p.a.
Monthly repayment#
$3,157.
Rates from~~~
6.49
%
p.a.
Comparison Rate*
6.67
%
p.a.
Monthly repayment#
$3,157.

Monthly repayment#
$3,157.
#Based on the dollar value represented in the search fields with P&I repayments and a 30 year loan term.
2024 WeMoney - Best Value for Refinance 2023 WeMoney - Best for Value (Variable) 2024 Mozo - Expert's Choice for Best Green Home Loan Gold Award - Best Green Home Loan 2022 WeMoney - Outstanding Customer Service
Our home loan products are recognised & awarded by the Australian financial industry

What is an interest-only loan?

An interest-only home loan allows you to only pay the interest on the amount borrowed (known as the principal) for an agreed interest-only period of 1-5 years. At the end of the interest-only period, loan repayments will increase to pay off the interest and principal of the loan.

How does an interest-only loan work?

Interest-only loans are only applied during the first period of your home loan, which can be up to five years. During this period, the loan repayments only consist of the interest on the loan balance (the principal). Therefore, repayments will be lower because you will not be paying off the principal.

After the interest-only period, the loan will revert to a principal and interest (P&I) loan. The loan repayments will include paying the interest and principal, rather than just the interest, resulting in higher repayments.


Get started

Apply for an interest-only home loan online today. Or, one of our friendly lending specialist can do the hard work for you and manage your paperwork over the phone.

Either way, we can settle your loan quickly so you can start saving thousands sooner.

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Talk to a home loan expert

Book a time that suits you to chat with a lending specialist to take care of the paperwork for you.

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Ready to apply?

Call us on 13 10 90, or simply start your home loan application application online.

Who is best suited to an interest-only loan?

Interest-only loans can be a great option for 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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Our owner occupied rates

Product Name

LVR

Interest Only Rate p.a.

Up to 80%

6.54%
6.56% comp rate*

Up to 80%

6.74%
7.23% comp rate*

Up to 80%

6.54%
7.17% comp rate*

Up to 90%

6.49%
7.11% comp rate*

Up to 90%

6.64%
7.11% comp rate*

Up to 90%

6.69%
7.09% comp rate*

Owner Occupied Interest-Only rates

Variable Home Loan

80% MAX LVR
6.54%
6.56%

Variable rate p.a.

Comp rate p.a.*

Fixed Rate

80% MAX LVR
1 year Fixed
6.74%
7.23%

Fixed rate p.a

Comp rate p.a.*

2 year Fixed
6.54%
7.17%

Fixed rate p.a

Comp rate p.a.*

3 year Fixed
6.49%
7.11%

Fixed rate p.a

Comp rate p.a.*

4 year Fixed
6.64%
7.11%

Fixed rate p.a

Comp rate p.a.*

5 year Fixed
6.69%
7.09%

Fixed rate p.a

Comp rate p.a.*

Our investor rates

Product Name

LVR

Interest Only Rate p.a.

Up to 90%

6.74%
6.76% comp rate*

Up to 80%

6.94%
7.24% comp rate*

Up to 80%

6.74%
7.19% comp rate*

Up to 90%

6.69%
7.15% comp rate*

Up to 90%

6.84%
7.16% comp rate*

Up to 90%

6.89%
7.15% comp rate*

Investor Interest-Only rates

Variable Investor Home Loan

90% MAX LVR
6.74%
6.76%

Variable rate p.a.

Comp rate p.a.*

Fixed Rate

80% MAX LVR
1 year Fixed
6.94%
7.24%

Fixed rate p.a

Comp rate p.a.*

2 year Fixed
6.74%
7.19%

Fixed rate p.a

Comp rate p.a.*

3 year Fixed
6.69%
7.15%

Fixed rate p.a

Comp rate p.a.*

4 year Fixed
6.84%
7.16%

Fixed rate p.a

Comp rate p.a.*

5 year Fixed
6.89%
7.15%

Fixed rate p.a

Comp rate p.a.*

Find your next home loan

For 10 years, we've been helping Aussies into their dream homes and saving them thousands. Find the right loan for you today so you can start saving too.

Want to see more home loan options? Compare our home loans

Benefits of interest-only loans

Keep your repayments low during the start of your mortgage

Save some extra cash or renovate your property with lower repayments during the interest-only period of your home loan.

Choose the interest-only period

Choose a 1-5 year duration of the interest-only period to best suit you.

Investor perks

Claim higher tax deductions with an interest-only loan as an investor, and use the extra cashflow to renovate your property.

Easily switch from an interest-only to principal and interest loan with loans.com.au

As a loans.com.au customer, you won’t need to do anything to switch from an interest-only to principal and interest loan. We will notify you of the change and the new repayment amount and automatically transfer your loan to principal and interest.

Save some extra cash or renovate your property with lower repayments during the interest-only period of your home loan.

Choose a 1-5 year duration of the interest-only period to best suit you.

SClaim higher tax deductions with an interest-only loan as an investor, and use the extra cashflow to renovate your property.

As a loans.com.au customer, you won’t need to do anything to switch from an interest-only to principal and interest loan. We will notify you of the change and the new repayment amount and automatically transfer your loan to principal and interest.

Join our other loans.com.au customers

Exceptional service!

Exceptional service! Grateful to Ray for guiding us through the home loan process for our first home. His expertise, responsiveness, and personalised approach made everything smooth. Highly recommend. Thank you Ray and team.

Mary H.
18 Mar 2024

Very easy process

Very easy process with a friendly lending manager to guide you through.

Helen D.
25 Feb 2024

A big thanks to loans.com.au

My experience in getting a loan from Loans.com.au has been great. I think I was also fortunate in getting a highly experienced loan officer Ray Glowacki who was able to evaluate the circumstance and offer me the most suitable product.

FRANK D.
31 Jan 2024

Extremely helpful

Ray has been extremely helpful in setting up my refinance, he made the process so easy and was happy to take the time to answer all my questions. Thanks Ray!

Tamara W.
17 Jan 2024

Helpful!

Ray was an absolute pleasure to work with. His knowledge and years of experience meant he was able to assess our complex situation to find the best outcome for us. Ray thank you so much for your help and support every step of the way!

Samantha S.
16 Dec 2023

Professional and less stressful application

A big thanks to Ray and his team for making this process seamless. Professional advice and communication throughout the process. Professional and less stressful application than with any other we have been involved in before.

Gareth W.
12 Dec 2023

Great customer service!

Great customer service, thanks Ray!

Chris W.
19 Nov 2023

Simply amazing!

Ray was simply amazing! He took on my crazy timing request and helped drive the process to conclusion. Took some of the stress out of purchasing a property!

Clive G.
14 Nov 2023

Quick efficient and friendly!

Incredible company that has 10/10 customer service. Quick efficient and friendly!.

Gdenma G.
21 Sep 2023

Would highly recommend

Ray couldn’t have made the process of refinancing any easier for us. Would highly recommend.

Scott B.
21 Aug 2023

Excellent People, Cheap rates, fast process

Excellent People, Cheap rates, fast process. I had to arrange finance in 2 weeks and they sorted it out. Rena has been extremely helpful.

Sam S.
26 Jul 2023

Incredible experience

Had full formal approval within 10 days from applying online. Hassle free, transparent and above all else a really competitive interest rate. Thanks all for making an incredibly stressful and high stakes event so seamless. HIGHLY recommend!

Tim D.
25 Jul 2023

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)

Our home loan application process

1
Apply online

Apply online

Simply fill out your 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.

2
Goodbye paperwork

Goodbye paperwork

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.

3
Settle & save

Settle & save

Your loan will settle and you'll start saving with your new low rate, and get your keys to your new dream home!

Variable rate home loan

In this article, we provide important tips to help you make smart property investment decisions.

Variable rate home loan

Breaking into the property market is easier said than done. With continuously soaring real estate prices, it’s getting more and more difficult to invest in properties. The good news is there are plenty of affordable suburbs in Australia that offer great investment opportunities.

Variable rate home loan

Interest-only home loans allow you to only pay the interest on the balance you have borrowed for a specific period. Find out more on how do interest-only loans work.

Variable rate home loan

Thinking of refinancing your interest-only loan? Learn more about it here.

Variable rate home loan

There are a number of strategies you can choose from to repay your home loan debt. The key components of loan repayments are the principal and the interest. Find out more about what is principal & interest home loan?

Variable rate home loan

How is the interest rate on your home loan determined and how is it calculated? In this article, we explain the basics of mortgage interest rates and how they affect your repayments.

Variable rate home loan

As interest rate has a big impact on your mortgage repayments, it’s crucial to understand the different types of interest rates & how they work.

Variable rate home loan

If you are looking to invest in property, you may need to consider a different type of loan than an owner occupier loan. Here’s a helpful guide to the different options you have as a property investor.

Variable rate home loan

For most people, their home loan is their biggest debt and for that reason, there is a strong urge to pay it off faster.

Variable rate home loan

What's the difference between an owner-occupied home loan vs investment loan? If you're considering taking out an investment loan for a second property, start here.

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