AU Australia property term

Principal and Interest Loan

Australia-wide

Plain-English definition

A loan where each scheduled repayment covers interest and also reduces the amount originally borrowed.

Why this matters to a foreign buyer

Repayments are usually higher than during an interest-only period, but the debt reduces over time. Compare total interest across the full loan term.

Learn the WA buying process

For step-by-step Perth and WA guides, visit Property Learning Hub.