Repayments

Making your repayments on Principle & Interest indicates that you are paying down your Home Loan, as well as the interest charged.

This type of repayment is for Home Buyers seeking to live in their newly purchased property, this way you can pay off your Mortgage whilst paying interest.

Interest Only repayments indicates that you are not paying down the Mortgage, but the interest charged on it alone.

This is common for Home Buyers purchasing an Investment Property - as they will have rental income covering the repayments.

As a Borrower seeking to live in the proposed property, you must apply for Interest Only repayments, as Lenders only allow this in special circumstances - not as a standard.

Repayments can be flexible to an extent - leaving the Borrowers a few options. The frequency applies to how often you would like to make repayments - so long as the Home Loan is on a Variable Rate, as the Lender won’t allow Extra Repayments on a Fixed Rate.

However, for Borrowers on a Variable Interest Rate, you have the option to make repayments Monthly, Fortnightly or Weekly. Many Home Buyers take advantage of this system to pay down their Mortgage quicker and potentially save money in the long run - as long as you are comfortable to do so.

A standard Home Loan term is 30 years - therefore you could potentially remove a period of time by paying off your Mortgage faster.