Skip to content

Feature article.

The latest finance news, articles and information at your fingertips.

Interest only term about to expire

Orica Financial Services Feature Article

Interest-only investment term about to expire?

If you’re currently paying interest-only on your home loan, at some point in the future it will expire and you’ll be required to pay off both principal and interest.

This article explains everything you need to know:

Interest only term about to expire

If you’re currently paying interest-only on your home loan, at some point in the future it will expire and you’ll be required to pay off both principal and interest.

Interest-only loans typically only run for a period of 4–5 years depending on your lender, so it’s worth planning in advance what you’ll do when it expires.

Here are some of your options.

Get an extension

It might be possible to get an extension on your interest-only period and continue to pay just interest for another fixed term.

This is something that you will need to speak to your lender about and each one will vary in how they might handle this request.

They will likely want to see you move to principal and interest at some point, but this will come down to your personal circumstances and your lender.

Start repaying principal and interest

Depending on your goals and financial situation, moving across to principal and interest might be an option for you.

If you’ve owned your property for some period of time, you might now be in a position where you’re earning higher wages or seen your rental income increase.

However, there are some things you will need to consider beforehand, including how much time is left on your loan. If you had a five-year interest-only period with the total length of the loan being 30 years, then you’ll have 25 years to pay down the principal which would mean higher repayments than a 30-year loan term.

Another important consideration is that with a principal and interest loan, you may be able to get a lower interest rate. Lenders might perceive a principal and interest loan as being lower risk and therefore offer a lower interest rate.

Contact us today


Refinance

If you want to keep on paying interest-only, or even if you want to switch, it’s worth talking to a mortgage broker and comparing your options.

Just because you want to revert to a principal and interest loan doesn’t necessarily mean you’re going to be getting the most competitive interest rate or the right loan features to suit your needs.

If your intention is to continue paying interest-only, it’s worth having a mortgage broker assess the market and see what the right solution might be for your situation.

The other important considerations if you choose to refinance are if there are any costs involved, as well as thinking about the new loan term you want to take on and the costs that might be associated with that.

Interest only term about to expire

See how much you could save in repayments every month with our Debt Consolidation Calculator. 

Interest only term about to expire

See how much you could save in repayments every month with our Debt Consolidation Calculator. 

How we can help

Interest only term about to expire
Interest only term about to expire
Interest only term about to expire

Home & Investment Loans

Business & Commercial Loans

Car, Boat, Jet Ski, Caravan

Interest only term about to expire
Interest only term about to expire
Interest only term about to expire

Private Funding

Non-Conforming Loans

Equipment Loans

How we can help

Frequently asked Questions

Interest only term about to expire

Save Time & Money

Here at Orica Financial Services, we are different from other brokers because we look at every positive aspect of your loan application before we make a recommendation on how you should move forward with your loan application.

There is no need to guess, call as at Orica today and we will help you with your loan application.

Lenders we work with

We have access to one of Australia’s largest lending panels, which means choice from over 60+ lenders and thousands of different loan options. 

Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire
Interest only term about to expire

Lenders we work with

We have access to one of Australia’s largest lending panels, which means choice from over 60+ lenders and thousands of different loan options. 

Interest only term about to expire

Non Conforming Loans

Good for getting you out of trouble, consolidating debt and lowering your monthly repayments

Borrowing up to 80% of the value of the residential property

Please note that lending policy, fees & charges apply

Interest only term about to expire

About Us

Our finance team look at all the options for you personally and compare all the lenders for the best possible deal.  

Free Tools 

Interest only term about to expire

Get More From Us

About Us

Our finance team look at all the options for you personally and compare all the lenders for the best possible deal.  

Free Tools 

Contact Us

Copyright © 2022 Orica Financial Services – For the best advice the first time, ACR 485818