We’re in a challenging environment for property investors
and homebuyers — interest rates are still relatively high, living costs are
biting, and many long-term investors are finding themselves "asset rich
but cash poor."
So, when a lender comes out offering a 10-year interest-only
(IO) home loan, it naturally raises a few eyebrows and some important
strategic questions.
Is this the kind of innovation that can give investors more
breathing room, or is it just a risky gimmick?
What’s being offered?
AMP has launched a 10-year interest-only loan that’s
available for both owner-occupiers and investors.
That’s double the usual five-year IO term
offered by most mainstream banks.
And it’s not limited to new loans; they’re opening it up to
refinancers, too.
This is significant because one of the big pressures
property investors are facing right now is the transition from interest-only
periods into principal-and-interest repayments, just as their costs are
peaking.
So, the idea of extending interest-only terms without the
usual refinancing hoops might sound like music to some investors’ ears.
The benefits for investors
There are a few clear upsides to a longer IO term, if used
wisely.
RealRenta has all the
tools that a property manager has, but for less than ¼ the cost of a property
manager.
You can now manage your Residential, Commercial, or share/student
accommodation property
Join now, and the cost
is less than a cup of coffee a week to manage your rental property.
RealRenta also has a
free vision, so why not check it out.
Jason Gwerder
Wednesday, 25 June 2025
