Pay less to live in the beautiful South West with an interest only loan.
What’s an interest only loan?
Interest only loans allow you to pay just the interest on your loan for an agreed period of time (usually three to five years). This means your mortgage repayments will be much lower, but since you’re not paying the principal your loan balance won’t reduce. Most interest only loans will allow you to make extra repayments on your loan during the interest only period. Once the interest only period expires your loan will revert to a standard interest and principal loan.
If you’ve got debt or other expenses that you think might prevent you from getting your own home, then think again. An interest only loan can be a great way to get into the property market sooner. Much lower repayments are required which means more of your income is freed up for other expenses. With an interest only loan you could get into your own home in the South West right away, probably for less than you’d spend on rent. They let you focus on other debts and expenses in the short term whilst still owning a home, but some eligibility criteria apply.
Who’s eligible for an interest only loan?
To be eligible for an interest only loan, you’ll need to meet a number of requirements. Here’s the basics you’ll need…
- 18 years or older
- An Australian citizen or permanent resident
- To have a stable income
Ready to get started?
Want to find out if you qualify for an interest only loan? Our in-house finance team can help! We’ll be there every step of the way, from application to approval. Don’t wait - get in contact with us today and get started on your home building journey!
FAQ’s
Find the answers to some of the most common questions asked by first home buyers, or get in touch with our expert team to learn more!
What are the benefits of an interest only loan?
The biggest advantage of an interest only loan is that you’ll be able to make much smaller repayments on your home loan for a period of time. This can be beneficial if you’re currently on a tight budget, trying to pay off other debts or wanting to build up your savings.
What are the drawbacks of an interest only loan?
With an interest only loan you could pay more interest over the life of your loan and you won’t build equity in your home during the interest only period. If you don’t prepare properly you may also find yourself facing financial stress when the interest only period expires.
