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Need a cash flow boost?

An interest only term over the life of your loan could come in handy if changes in personal circumstances and finances mean you need access to cash to:
Pay for property repairs or upgrades
Assist with reduced income or debts
Cope with unexpected personal events
Claim potential investor tax benefits*

Apply for interest only repayments

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:

Owner-occupied loan

Interest only is available for up to 5 years over the life of the loan.

Investment 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 term expiring soon?

Once your interest only repayment term expires, you'll have three options:
Switch repayment types
Do nothing, and you'll automatically switch to principal and interest repayments.
Extend for another term
Request an extension if you haven't reached the interest only repayment time limit.
Apply for a new loan
Call to discuss your options if you've reached the maximum allowable on interest only.

Benefits for investors

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.

Extra home loan savings 

Set up an offset account

By adding an offset account to your variable home loan, you can reduce the interest payable.

Access extra repayments

Reduce your home loan balance by making extra repayments that you can redraw at any time.

Make payments more often

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.