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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What our customers are saying

Sheree Tidswell

February 20, 2025

Scott Wilkinson and the team at Uno Mortgages were exceptional to work with. They were proactive, took the initiative at every stage, and kept us well-informed throughout the process. Their patience and relaxed approach made everything feel seamless, and we truly felt supported in achieving the best outcome for our needs. We highly recommend Scott and the Uno team for their professionalism and dedication!

Jaio Seto

February 19, 2025

Paul is great to deal with, he made the whole process super easy!

Ankur

February 12, 2025

Shelley and the team at UNO Home Loans have been amazing to deal with. The process has been very smooth. I would highly recommend their expertise.

Rich N

February 6, 2025

Mike Parsons was so good. He went in to bat for us with the bank and the valuers and everything went smoothly, eventually!! - One is always waiting for banks it seems... Mike gave us clear and concise information and time-frames during the whole process and was super friendly and way to deal with. Highly recommend Uno and Mike.

Baron Wills

January 21, 2025

Scott was referred by a mate of mine whom I've known for years back in Novemberof 2024. Shared my goals and what my ideal outcomes were and had one of the quickest and easiest turnarounds I've ever experienced thanks to Scott. He was easy to work with with allowed me to go at my own pace. When I had questions Scott took the time to help me understand in a way that made sense to me. We finalised our transactions a month later and settlement couldn't have been more easier. Thank you Scott and his amazing team at Uno home loans. I highly recommend and will be looking to partner with Scott and his team again on my next investment loan.

Theresa Liebenberg

January 15, 2025

Paul Davey was our mortgage broker for the purchase of our first home in Australia. We were very anxious about purchasing a home less than one year in the country. Paul's initial consultation was great and we did not even consider any other avenues. Right through the process, he kept us informed and utilised whatever additional expertise from Uno to get us an approved mortgage. Straightforward and efficient! We highly recommend Paul and Uno for the purchase of your new home. Theresa and Johan

Mark

January 10, 2025

We were recently approved for finance with Scott Wilkinson at UNO Home Loams. Scott was friendly and professional the whole way through the process and obtained the finance for us when many others had said they wouldn’t be able to. Thanks to Scott we were able to get everything done and settled in quite a short amount of time considering the complexity of the deal. We knew where we stood the whole way and no details were hidden or forgotten . Thanks Scott you are highly recommended by myself and my Wife.

Lise Ioane

December 30, 2024

Paul Davey and the team were amazing! As Kiwi's who have moved to Australia I wanted to use someone back home or who had experience with helping FHB in Australia. Paul answered all of our questions in a timely manner and helped us to secure the home loan and move into our new home. We had a few meetings with Paul and he did all the the work so us, we just filled in the required paperwork and he and the team did the rest. We dealt with Dalby for the last part of the process and he was also amazing! Highly recommend Paul and the team! Thanks Paul, Dalby and the team and UNO Home Loans.

Neil Venkataramiah

December 20, 2024

Mike Parsons: Working with Mike was amazing. My wife and I were a couple from Sydney that had a 7 year stint overseas. On moving back, our loan had gone from Interest Only to Principal and Interest. The challenge: to get 2 recently re-patriated Aussies on an Interest Only loan. With only 1 year of Oz financials. And with income from an overseas company. We had equity in our property, but the ability to service was the issue. A very tough brief. Step in Mike. He contacted all his lenders, knowing that this was a unique situation. He never let up and followed through with calls and whatsapps at every stage of the process. We simply could not have got our Interest Only loan if it wasn’t for Mike. I highly recommend Mike for any loan or re-finance that you’re looking at. His attention to detail and ability to find creative solutions is second to none. And most importantly - he's a good guy that will guide you through the whole process in what can be a stressful time. Steph and Neil

Philip Smith

December 20, 2024

Mike Parsons provided my wife and I outstanding service for our home loan. I have never dealt with someone who is so helpful and goes the extra mile and provides such excellent service the way Mike did. Highly recommend Mike as your broker for all investment/home loans you won’t be disappointed.

Gemma Smith

December 19, 2024

Mike Parsons was truly amazing when he organized our home loan. He offered service that far exceeded my expectations. He was on top of everything and was very organised. He has a true “do it now” attitude and ensured everything ran smoothly. He went above and beyond to make sure everything was in place. He was always contactable (even when he was on holidays!). Keeping us up to date at every step and his communication was great! Would VERY HIGHLY RECOMMEND Mike!

Stéphane Aumont

December 19, 2024

Highly recommend Mike - great service, very responsive and helped us through the whole process from product selection, approval all the way to settlement. Mike is supported by a great team 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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