Interest Only Loans

Interest Only Home Loans offer lower monthly repayments for an initial period—usually between 1 to 5 years—by allowing you to pay only the interest, not the principal. This can be a smart short-term strategy for property investors looking to maximise cash flow or for homeowners wanting to manage lower costs during certain life stages.

While this approach provides greater flexibility and financial breathing room, it’s important to remember that the loan balance remains unchanged during the interest-only period, and repayments will increase once you start paying off the principal. At Paragon Mortgage Solutions, we work with you to understand your financial goals and help you determine whether an Interest Only loan is the right fit for your situation.