You can check if interest-only home loans are beneficial for you by using this interest only calculator. If you are looking out to buy an expensive property then this interest-only loan would be a greater option. Through this interest-only loan, you can start off the loan repayment with small installments in the starting phase.
To make this easier for you, there is an interest-only mortgage calculator which will give out the interest levied and also the monthly installment amount during the interest-only period.
Like any other loan calculator, this interest-only mortgage calculator in Australia will give you the desired results by putting the required date in it. Check out the information required to enter into the calculator.
The borrowed amount from the lender with a contract of returning it in the stipulated loan term is called a loan amount.
The extra amount that is paid along with the loan amount is the interest which would be decided by the lender at the time of sanctioning the loan. This is called the interest rate and can be either fixed or variable.
The repayment time of the loan is called the loan term which is generally 25 to 30 years.
This is the repayment schedule in which you would pay back the loan. This can be weekly, fortnightly or monthly.
The interest-only period is the time before the loan amount gets bifurcated into the principal amount and interest amount. 1 to 5 years is the interest-only period.
All through the loan term and amount known as a loan fee needs to be paid to the lender which can be monthly or annual.
Once all the above values are entered the interest-only calculator will provide the monthly installment amount along with the principal + interest loan amount.
If you are borrowing a home loan, then check out why interest only home loan is beneficial where you will be paying only interest amount and not the principal.
To increase the tax benefits, the investors prefer interest only loans
In comparison with principal and interest amount, you will have a lot of free cash when you pay only interest.
Savings are more as the repayment values are less, which can be used for other investments purposes.