Interest Only Home Loans
Want to find out about interest only home loans?
Debt Monster is a 100% professional and competent Financial Broker able to access to the most competitive home loan rates in Australia. Why not benefit from our free service and see if we can find you the home loan or mortgage of your dreams?
What is an interest only loan?
An interest only home loan is a mortgage which requires the borrower to pay back only the interest accrued by the loan, not ever touching the lump sum. Many investors use interest only loans as they only need to make interest repayments.
What are the Pros and Cons?
Repaying only the interest on your home loan means your monthly payments are much lower. Therefore you have more spare cash to help with cash flow. However, the main disadvantage with this type of interest free home loan means is that you’re not touching the lump sum you borrowed to buy your property. Interest rates for interest only home loans are also usually higher than other mortgages. Also, interest rates can rise at any point – meaning your repayments will too!
Is an interest only home loan right for me?
Interest only mortgages are growing increasingly popular in Australia, as households struggle with increased living costs. This type of home loan may be suitable if:
- You need to save money in the short-term Investors
- You only wish to hold onto a property for a short period
- Your income fluctuates, therefore you cannot be sure you’ll have enough to keep up mortgage repayments
Home Loan Calculator – Interest Only
Interest only home loans are usually only recommended for five-year period. To work out whether an interest only loan is a good idea, use an interest only home loan calculator to make financial projection for the coming years.
Our Best Home Loan Rate
AVAILABLE FOR VERY LIMITED TIME
*The comparison rate is based on a loan of $150,000 for a term of 25 years. WARNING. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Why Debt Monster?
Debt Monster can compare many interest only home loans in one go, from several different banks and lenders. For easy mortgage searching, choose Debt Monster!