Interest-Only Home Loans
An interest-only home loan will leave you only paying interest for the first few years of your loan.
Multi-award winning
Variable Home Loan
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Discounted home loan rate*** -
Offset sub-account available for +0.10%^
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No monthly or ongoing fees
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Free redraw on any additional repayments
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Pay your bills via BPAY
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Access your account via Smart Money app
An Interest only term reduces your repayment, so you’ll only be repaying your loan interest for an agreed interest - only period of 1- 5 years.
At the end of the interest only period, your loan will change to a 'principal and interest' loan where you'll start repaying the amount borrowed, as well as interest on that amount, resulting in higher repayments.
Our home loans
| Home Loan | Interest Rate | Comparison Rate | Monthly Repayment | Product Features | Details |
|---|---|---|---|---|---|
Variable Home LoanOwner Occupied • Interest Only • Up to 80% LVRMost Popular
|
6.29% p.a. | 6.16% p.a. | $2,621 |
|
Do I Qualify? |
Green Home LoanOwner Occupied • Interest Only • Up to 80% LVR |
6.24% p.a. | 6.41% p.a. | $2,600 |
|
Do I Qualify? |
Solar Home LoanOwner Occupied • Interest Only • Up to 80% LVR |
6.24% p.a. | 6.41% p.a. | $2,600 |
|
Do I Qualify? |
Who is best suited to an interest-only loan?
Interest-only loans can be a great option
For investors, or for home buyers who’d prefer to spend money on making improvements to the property rather than paying off the principal at the beginning of the loan. There may also be tax benefits for investors who choose an interest only loan.
Why choose a Interest-Only Home Loan?
Interest only period
Enjoy lower repayments during the interest-only period of your home loan so you can save extra cash or renovate.
Perks for Investors
Reap potential tax benefits by offsetting rental income against your costs, and use the extra cashflow to renovate your property.
We'll switch you
We will notify you of the change, the new repayment amount and automatically transfer your loan to principal and interest.
Unexpected events
Temporarily reducing your home loan repayments could help ease some financial pressure, when life's unexpected events happen.
A home loan that gives you budget confidence
Here’s your new offer
| Rates |
|
| Key Features | Up to 30 years loan term | |
| Available for refinance or purchase | ||
| Flexible repayment options |
| Repayments | Frequency | Weekly, monthly or fortnightly |
| Estimated repayments | $2,621 per month# The monthly repayment estimate is based on a $500,000 loan over 30 years at 6.29% p.a. paying interest only. |
| Fees |
Application fee |
$0 |
| Ongoing fees | $0 | |
| Security assessment fee | $230 | |
| Government fees | At cost | |
| Settlement fee | $300 | |
| Optional rate lock fee | $350*^ |
Owner Occupier |
|||||||||||||||
| Variable Home Loan | Interest Rate: 6.29% p.a.*+ |
| 1 Year Fixed | Interest Rate: 6.49% p.a.*+ |
| Comp Rate: 6.09% p.a.* | |
| Max LVR: 80% |
| 2 Year Fixed | Interest Rate: 6.39% p.a.*+ |
| Comp Rate: 6.11% p.a.* | |
| Max LVR: 80% |
| 3 Year Fixed | Interest Rate: 6.39% p.a.*+ |
| Comp Rate: 6.14% p.a.* | |
| Max LVR: 80% |
Investor
| Variable Investor Home Loan | Interest Rate: 6.49% p.a.*** |
| Comp Rate: 6.41% p.a.* | |
| Max LVR: |
| 2 Year Fixed Investor | Interest Rate: % p.a.*+ |
| Comp Rate: % p.a.* | |
| Max LVR: |
| 3 Year Fixed | Interest Rate: 6.59% p.a.*+ |
| Comp Rate: 6.41% p.a.* | |
| Max LVR: 80% |
| Up to 30 years loan term | |
| Available for refinance or purchase | |
| Flexible repayment options |
| Frequency | Weekly, monthly or fortnightly |
| Estimated repayments | per month# The monthly repayment estimate is based on a $500,000 loan over 30 years at 6.29% p.a. paying interest only. |
| Application fee | $0 |
| Ongoing fees | $0 |
| Security assessment fee | $230 |
| Government fees | At cost |
| Settlement fee | $300 |
| Optional rate lock fee | $350*^ |
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Home loan customers
Meet the team who’ll start saving you thousands
We have a friendly team of Australian-based lending experts here to help you from application to settlement, so you can get a better loan and start savings thousands.
Our home loan application process
Application
Simply fill out your home loan application online by entering some of your details, or chat to one of our friendly lending specialists over the phone and they can complete your application for you.
onTrack
After your application is complete, use our system we call onTrack on your desktop or device to add your documentation such as payslips and bank statements, and track the progress of your application.
Speak to specialist
You will then have an appointment with one of our lending specialists to organise your preliminary approval of your loan, and help you progress through the home loan approval process through to settlement as quickly as possible.
Signing document
Check onTrack to received your final approval, mortgage documents and loan agreement. You must sign these and return them in to onTrack.
Settlement
Your loan will settle and you’ll start saving with your new loan rate, and get your keys to your new dream home!
Access your account
Once settlement is complete, we will send your login credentials to start managing your payments in the Smart Money app.
Frequently Asked Questions
What is the process of buying a house?
Buying a house can be a time consuming process so we’re here to help make it a little easier. This step-by-step guide to the property buying process will make things easier for you.
How much does it cost to build a house?
If you’re thinking about building your own home, a key element underpinning most of your construction decisions will revolve around the cost. Let's find out how much does it cost to build a house in Australia.
Average Australian Mortgage Size in 2024
According to the latest lending indicators from the Australian Bureau of Statistics (ABS), the average mortgage size for owner-occupier dwellings is $642,121 as of September 2024. Compared to the same month last year, the average mortgage size has increased by $43,254 or 7.2%.
Hidden costs of building your own home
How do I qualify for a green home loan?
How to get approved for a home loan
Understanding home loan interest rates
Tax deductions for your investment property
Tips for Buying an Investment Property in Australia
What is Lender’s Mortgage Insurance?
Auction tips for buyers
What the RBA rate cut means for your home loan
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