Given that the average home value in Australia is $570,249, it’s unsurprising that most people need a home loan to finance their property purchases. As such, securing the right property financing arrangement is critical to a successful investment. To help you out, we break down exactly what you need to know about mortgage loans in Australia below.
Interest-only loans are where you merely pay back the interest of a loan to the lender. So if you borrowed $500,000 and made repayments for five years, your balance would still be $500,000. They are designed predominantly for investors for cash flow and tax deductibility purposes.