Interest-Only Home Loans
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
-
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
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 |
|---|---|---|---|---|---|
Variable Home LoanOwner Occupied • Interest Only • Up to 80% LVRMost Popular
|
6.04% p.a. | 5.91% p.a. | $3,234 |
|
Do I Qualify? |
Green Home LoanOwner Occupied • Interest Only • Up to 80% LVR |
5.99% p.a. | 6.16% p.a. | $3,218 |
|
Do I Qualify? |
Solar Home LoanOwner Occupied • Interest Only • Up to 80% LVR |
5.99% p.a. | 6.16% p.a. | $3,218 |
|
Do I Qualify? |
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
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 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
How much deposit do I need for a home loan?
While home ownership is a dream for many in Australia, it is a big financial investment. It’s easily one of the most expensive purchases we’ll ever make in our lives. Saving up for the house deposit alone is one of the biggest hurdles to getting into the property market.
Are Green Homes More Valuable?
Going green isn’t a passing lifestyle trend. There’s a growing need for sustainable and eco-friendly housing as Aussies become even more environmentally conscious. In 2025, over half of all houses sold had energy-efficient elements.
How much do Australians spend on rent?
According to the latest Domain Rental Report, asking rents in Australia across most capital cities have shown signs of stalling or declining. Although there are still rent increases in most capital cities, they were not at the rate previously forecasted.
How much do Australians spend on rent?
Top Suburbs for Rental Yield in Queensland
What is a fixed rate home loan?
Eligibility requirements for a home loan
How often should you refinance your home loan?
What is Loan-to-Value Ratio (LVR)?
How does equity work when buying a second home
Mortgage Jargon buster
How much does it cost to build a house?
Welcome to loans.com.au _
Just in case we lose you, may I ask for your contact details....