Interest Only Home Loan Calculator

An interest only home loan is a type of mortgage where you pay only the interest on the loan for a specified period, typically 5 to 10 years. During this interest-only period, your monthly payments are lower because you're not paying down the principal. This can be beneficial for investors, property developers, or homeowners who expect their income to increase in the future.

Interest only home loans are popular in Australia and New Zealand, with major banks like Westpac, ANZ, NAB, ING, and CBA offering competitive interest only home loan rates. These loans are particularly attractive for property investors who want to maximize cash flow or for homeowners who plan to sell the property before the interest-only period ends.

When comparing interest only home loan rates, it's important to consider not just the interest rate, but also fees, loan features, and what happens after the interest-only period ends. Most interest only mortgages convert to principal and interest repayments after the interest-only period, which means your monthly payments will increase significantly.

Our interest only home loan calculator helps you understand the true cost of an interest only mortgage. You can calculate monthly payments during the interest-only period, see how much you'll pay after the period ends, and compare rates from different banks. The calculator also supports home equity loans, which allow you to borrow against the equity in your existing property.

For property investors, interest only home loans can provide tax benefits and improve cash flow. However, it's important to remember that you're not building equity during the interest-only period, and you'll need to have a plan for repaying the principal when the period ends. Some borrowers choose to refinance, sell the property, or make extra payments during the interest-only period.

Whether you're looking at interest only home loan rates in Australia or New Zealand, our calculator can help you make an informed decision. Compare rates from Westpac, ANZ, NAB, ING, and CBA, and see how different interest rates and loan terms affect your monthly payments and total interest costs.