💭 Interest-Only or Principal & Interest – which is right for you?
When choosing a home loan, your repayment type can impact your cash flow, loan term, and overall interest paid. Let’s break it down:
🔹 Interest-Only (IO):
💸 Lower repayments (for now)
⏳ You’re only paying the interest — not reducing the loan balance
📈 Often used by investors to maximise cash flow
🔹 Principal & Interest (P&I):
🏠 You pay down the loan balance + interest
📉 Builds equity in your property
✅ Usually has lower interest rates compared to IO
⚖️ Choosing the right repayment type depends on your goals — whether it’s owning your home sooner, investing, or managing cash flow.
Not sure which suits you best? Let’s chat and run the numbers 💬