Property investors: How much more is your interest-only home loan costing you?

UNO home loans

Calculate the benefit of a principal and interest loan over an interest-only loan for your investment property.

If you have an investment property, chances are you’re financing it with an interest-only home loan.

For many years, most lenders, mortgage brokers and financial advisers have recommended interest-only loans over a principal and interest loan to free up cash flow, and maximise the tax-deductible portion of outgoings (the interest part of your home loan repayment).

However, price pressures from industry regulators have increased the costs of interest-only loans so much that for most property investors, choosing an interest-only loan could be costing property investors thousands.

How this calculator can help you

This calculator will help you work out whether choosing interest-only or a principal and interest repayments for your investment property loan could be financially better for you.

We calculate the results by taking into consideration:

The interest cost of the investment loan compared to the tax savings of negative gearing
The amount you’ll be owing compared to your repayments

What your results mean

If your result is a positive figure (green coloured), you could be better off choosing a principal and interest loan.

If your result is negative, you could be better off choosing an interest-only loan.

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October 29, 2025

Paul and the team at UNO Home Loans have been absolutely amazing, helpful and transparent during the process of purchasing our home. This team has made buying a house an absolute breeze. It has been a 9 year goal for my family and I to get back into the market and from the first zoom call with Paul all the way to settlement I have felt taken care of and at ease. I am so excited to be in our own home and am very grateful for how easy UNO made the experience. UNO offered great communication, clear instructions and got the job done. Thank you Paul and the UNO team. I will definitely be using these services again.

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October 27, 2025

Working with Scott Wilkinson at UNO Home Loans was a genuine pleasure. We used Scott to refinance our home loan and to structure an investment property loan. Both experiences were excellent from start to finish. Scott provided high quality advice, quick turnaround times and sharp pricing outcomes. Nothing was too much trouble. I look forward to using Scott’s services again and highly recommend to others.

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October 25, 2025

Scott and the entire team at UNO has been skilfully in helping and assisted with my complex property financing structure in a such short time frame to execute my first investment property. He has engineered a powerful strategy to accelerate my investment property purchase while ‘Optimising’ my financial position efficiently. I couldn’t be happier with experience. They made the whole process smooth and willing to go extra mile to get me best deal possible. I highly recommend him to anyone looking for reliable and professional broker.

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October 20, 2025

If only we could leave 10 stars... We've worked with Scott Wilkinson from Uno on the purchase of our principal place of residence, as well as a recently completed investment property. Scott was excellent throughout the entire process. He's got great communication, works incredibly hard and did everything he could to negotiate us the best deal. As business owners, the investment property was particularly complex and tricky to navigate. Scott helped us from start to finish and ensured we could maximise our borrowing capacity as well as secure a competitive rate. We've got nothing but amazing things to say about the guy and would highly recommend him to anyone considering buying property.

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October 18, 2025

Mike Parsons at UNO is absolutely fantastic to work with. He makes the entire home loan and refinancing process so easy and stress-free. Mike is incredibly responsive, proactive with follow-ups, and always goes the extra mile to make sure everything runs smoothly. He takes on all the heavy lifting and explains things clearly every step of the way. A great communicator who genuinely cares about getting the best outcome for his clients. Mike is my go-to mortgage broker, and I’ll continue to use his services for years to come. Highly recommend!

Kirstie Jenner

October 9, 2025

I honestly couldn’t recommend Paul Davey from Uno enough. He went above and beyond to get my pre-approval sorted, even with my tricky circumstances. He guided me through the whole process right through to settlement day and made everything so easy and stress-free. If you need a mortgage broker who actually cares and knows their stuff, he’s the one to call! Epic Service!

Pensive “Li” Pen

September 9, 2025

10/10 Stars Fantastic experience with Mike Parsons (and his team). Mike was quick to respond, explained everything clearly, and secured us a great rate with cashback. The whole refinance process was smooth and stress-free. Mike went above and beyond for us and exceeded all my expectations. 10 out of 10 Stars. Highly recommend!

I B

August 31, 2025

Great experience buying my first home with Mike Parsons and his team. He made the process simple and stress-free, explained everything in great detail along the way and helped me get a great deal. Highly recommend!

Eden Harris

August 20, 2025

Paul was awesome and handled my 1000 questions and follow ups like a pro. Happy with our home and loan :)

Liam Johnson

August 9, 2025

Fantastic service and great outcome. I have used Scott Wilkinson twice (initial finance and a subsequent refinance) and have found him to be responsive, reliable and knowledgeable - secured me a circa 1% rate reduction with minimal work involved from my end. Highly recommend.

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August 7, 2025

What a smooth, hassle free and stress free refinance with Jake. He took a very complicated loan from one bank to the other and not only saved us a lot of money but we basically also didn’t have to lift a finger in the entire process (apart from the basic paperwork needed). I am extremely impressed with Jakes knowledge and how he was able to answer questions and explain complications. Thank you Jake and the entire staff at UNO :)

Property investors: How much more is your interest-only home loan costing you?

How this calculator can help you

What your results mean

UNO home loans

Try Plans by UNO

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What our customers are saying