AU Australia property term
Interest-Only Loan
Australia-wide
Plain-English definition
A loan structure where scheduled repayments cover interest but do not reduce principal during the interest-only period.
Why this matters to a foreign buyer
Repayments can rise sharply when principal-and-interest payments begin, and the loan balance will not fall unless extra principal is paid. Model the full loan term, not only the initial payment.
For step-by-step Perth and WA guides, visit Property Learning Hub.