Table repayments are the most common option, with your repayments staying the same over the term of the loan.
The total amount of interest that must be paid over the term of your loan is added to the principal (the amount you borrow). This amount is then divided into equal repayments over the term of the loan.
With table repayments, you pay more interest than principal at the start, so initially you won’t build up much equity in your home. However, the balance changes over time so later on you repay more principal than interest and your equity builds up faster.
Interest only repayments are exactly what the name suggests – you only pay the interest with each repayment. The principal (the amount you borrow) must be repaid at the end of the loan term (you can choose a one to ten year loan term).
With these repayments, your payments will be larger at the start but reduce a little each time, and you pay slightly less interest over the term of the loan.
Different options are right for different people – so we’ll discuss all your options and help you come to the right decision.