Interest Only Mortgage Calculator

Estimate your interest-only repayments and understand how they may compare with principal and interest repayments.

Understand what interest-only repayments could look like.

An interest-only home loan allows you to pay only the interest charged on your loan for a set period, rather than paying down the loan balance at the same time. This calculator can help you estimate your interest-only repayments and compare them with principal and interest repayments.

Please note that this is a guide only. Your actual repayments may vary depending on your loan amount, interest rate, interest-only period, loan term, lender fees, and loan structure.

A broker can help you understand whether an interest-only loan may suit your goals and what your repayments could look like when the interest-only period ends.

How to use the interest only mortgage calculator

Enter your loan amount, interest rate, loan term, and interest-only period to estimate your repayments. The calculator can help you compare interest-only repayments with principal and interest repayments.

What is an interest-only mortgage?

An interest-only mortgage is a loan where you only pay the interest for a set period. During this time, your loan balance does not reduce unless you make extra repayments.

Are interest-only repayments lower?

Interest-only repayments are usually lower during the interest-only period because you are not paying down the principal loan amount. However, repayments may increase later when principal and interest repayments begin.

What happens when the interest-only period ends?

When the interest-only period ends, your loan may switch to principal and interest repayments. This means you begin repaying both the loan balance and the interest, which can increase your regular repayments.

Who might use an interest-only loan?

Interest-only loans may be considered by property investors, borrowers managing cash flow, or clients with a specific short-term lending strategy. It is important to understand the long-term costs before choosing this structure.

Is the calculator result accurate?

The result is an estimate only. Actual repayments may vary depending on your lender, loan type, interest rate, fees, repayment frequency, and individual circumstances.

How can a mortgage broker help me?

A broker can help you compare loan structures, understand the cost of interest-only repayments, and decide whether this option suits your financial goals.

Thinking about an interest-only loan?

A calculator can help you estimate repayments, but the right loan structure depends on your full situation. Speak with Boutique Finance to understand your options before making a decision.

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