Repayment options

Although there are many different home loans available, they are each made up of two components: interest and principal.

Interest only

An interest only home loan means your repayments only cover the interest for a set period of time—they won’t reduce the balance on your mortgage.

This type of repayment option is ideal if you’re looking to reduce your loan commitments at the beginning of your loan period (available for up to 15 years). It gives you the flexibility to pay off other debts or take advantage of wealth-building opportunities.

Principal and interest

This repayment option involves paying off a portion of both the principal (the amount borrowed) and interest over an agreed period of time, up to 30 years. This repayment option lets you reduce your home loan balance when you make repayments.

Home loan rates and fees

When choosing a home loan, you should take into account any upfront and ongoing costs associated with the loan, including loan service, loan establishment, account keeping, redraw and early termination fees and charges. You can view all standard home loan rates and fees or compare home loans to see which loan is right for you.