An interest‑only home loan lets you reduce your repayments for a period of time by paying only the interest on your loan. During this time, you’re not paying down the loan balance (the principal).

It’s a handy way of lowering your repayments in the short term, but it will usually increase the total interest you pay over the life of the loan.

How long can I make interest‑only repayments?

The maximum time you can make interest‑only repayments depends on whether your loan is owner‑occupied or an investor loan.

• Owner‑occupied home loans can have interest‑only repayments for up to five years in total over the life of the loan
• Investor home loans can have interest‑only repayments for up to 10 years in total over the life of the loan subject to credit approval.

Interest‑only repayments are approved for a period of time, provided the total interest‑only time across the loan does not exceed the maximum interest only period allowed.

After your interest‑only period ends, your loan will switch to principal and interest repayments for the remainder of the loan term.

Applying for or changing interest‑only repayments

If you’d like to:

• switch your existing loan to interest‑only repayments, or
• change your interest‑only arrangements

You’ll need to complete an application, which is subject to assessment and approval. A property valuation may also be required, and a valuation fee may apply.

To get started, download and print the interest‑only repayment request form. Once completed, you can return it to us by email or post.

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