Interest Only
Strategies
When interest-only loans make sense for investors — and when they are a short-term fix that creates long-term problems.
What you will learn
Four things to understand before you start the lessons.
Cash flow impact, tax implications, and how each affects your equity position over time.
What happens when your IO period ends and repayments jump 25–40% — how to plan ahead.
Why IO loans are harder to get and what lenders look for when assessing an IO application.
How to use IO strategically across a portfolio to maximise available capital for the next purchase.
IO vs P&I cash flow
The difference in your monthly outgoings on a $600,000 loan.
Over a 5-year IO period that is $32,520 in retained cash flow — available for deposits, reserves, or further investment. But the principal balance does not reduce by a single dollar during this time.
You are ready to begin
4 lessons, approximately 9 minutes. Complete the quiz to unlock the next module.