Interest Only Home Loans
Find out about our interest only home loans at BOQ
Find out about our interest only home loans at BOQ
An interest only home loan requires you to only repay the monthly interest on the amount borrowed (the principal) for a set term of 1-5 years. No repayments are required to reduce the principal amount borrowed, which means the loan balance doesn't reduce at all. At the end of the interest only period, the loan will change to a 'principal and interest' loan where you'll start repaying the amount borrowed, as well as interest on that amount. This will mean your loan repayments will be higher than if you had of made principal and interest repayments at the beginning of the loan.
We've listed out a number of reasons why investors choose to take out a BOQ interest only home loan.
Interest only home loans are a popular choice for property investors who prefer not to pay down the loan at the start but instead use the extra money to make improvements to the property and hopefully increase its value. Making further improvements to the property will hopefully make the home more appealing to renters and increase your rental income.
As always, if you need any guidance in deciding what loan is the right for you, please contact your BOQ home lending specialist on 1300 55 72 72 or find your local branch.
Comparing loans can be like comparing apples with oranges, so it’s important that you consider all the loan features before deciding if it’s the right one for you and your investment goals.
Know what your repayments are for peace of mind
A fixed rate home loan gives you certainty for up to 5 years without worrying about potential interest rate rises.
Save with our simple investment home loan
A simple home loan doesn't mean you have to compromise on its features.
Get in touch with your BOQ lending specialist to answer any questions you may have.
Here's some tips and advice on what you should consider when looking at investor home loans.
Looking for investment property interest rates? Compare our current home loan interest rates for investors here.
Is your loan right for you? Learn more about the different mortgage repayment types and how they could meet your changing home loan needs.