Interest-only calculator

How to use the interest-only calculator

1. Enter your loan amount

   Type the amount you plan to borrow, starting from the $400,000 default.

2. Set rate and loan term

   Enter your annual interest rate (default 5.5%) and total loan term in years (default 30 years).

3. Select repayment frequency

   Choose monthly, fortnightly or weekly from the repayment frequency dropdown.

4. Choose interest-only period

   Pick how many years you will pay interest only (default 5 years) before switching to principal and interest.

5. Add any ongoing loan fee

   Enter a recurring account fee (default $0) and set its frequency to monthly, fortnightly or weekly.

If you plan to keep cash in an offset account while paying interest only, test the interest saving with our home loan offset calculator.

The calculator shows your regular repayment during the interest-only phase, the higher principal and interest repayment over the remaining years, total interest and ongoing fees payable, total combined payments, and a chart of your loan balance.

What is included in this interest-only calculation

How visa and expat rules affect interest-only loans

An interest-only period lowers your initial repayments, but it tightens borrowing power. Because you repay no principal during a 5-year interest-only term, lenders test whether you can repay the full debt over the remaining years of your 30-year term, plus APRA's 3.0 percentage point serviceability buffer.

For Australian expat home loans, citizens can borrow up to 90% LVR on an investment property and permanent residents living overseas up to 80% LVR, with most lenders shading foreign income by 20%. On partner visa home loans, most banks require at least a 20% deposit for interest-only terms.