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Choosing interest only home loan repayments for a set term may maximise cash flow to deal with the unexpected or make plans for the future.
Already have a Bank of Melbourne home loan or looking for a new mortgage?
You can apply for interest only repayments on variable or fixed rate loans for both existing and new home loans:
Interest only is available for up to 5 years over the life of the loan.
Interest only is available for up to 10 years over the life of the loan.
Apply for a new loan, or if you already have a loan, give us a call on 13 22 66, 8am-8pm, Monday to Saturday or request a call back.
Interest only home loans come into their own when investing in property. You may be able to negatively gear your investment property by offsetting the interest repayments against the rental income and maintenance costs. Investment loans give you up to 10 years on interest only repayments freeing up funds for ongoing property maintenance or buying into additional investment properties.
By adding an offset account to your variable home loan, you can reduce the interest payable.
Reduce your home loan balance by making extra repayments that you can redraw at any time.
Pay off your loan sooner by changing repayments from monthly to weekly or fortnightly.
With interest only repayments, you’ll only repay the interest portion of the home loan without repaying the loan balance. While with principal and interest repayments, you’ll repay both the interest and the loan balance, meaning you'll pay back your loan sooner.
The Detail
Credit criteria, fees and charges apply. Based on Bank of Melbourne’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change.
Before making a decision, it’s best to read the terms and conditions:
Please read these documents and keep a copy. You can request a paper copy at a branch.
The information on our website is prepared without knowing your personal financial circumstances. Before you act on this or any advice, please consider if it’s right for you. If you need help, call 13 22 66.
Tax consequences may arise from promotions for investors and customers should seek independent advice on any taxation matters.
*The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation. You must seek independent tax advice to determine taxation implications that are applicable to your personal circumstances.