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Choosing the right loan isn’t just paperwork. It’s a move that can shape your investment strategy for years. Here’s the real talk on interest only and principal & interest loans.
On paper, P&I looks like the “responsible” choice. But investors know: the smartest play isn’t always the obvious one.
Interest only isn’t dodging responsibility, it’s playing the long game. Lower repayments mean more freedom to move.
That could mean:
And the kicker? Interest is generally tax deductible. Translation: you’re not punished for picking interest only.
The flip side? When the IO period ends, repayments jump if you move back to P&I. Smart investors plan for that pivot.
P&I builds equity brick by brick. For many homeowners, that’s comforting. But investors? Different ballgame.
Paying down debt with after-tax income can tie up funds that could be working harder elsewhere. Still, P&I isn’t off the table. It makes sense when:
There’s no universal answer. It comes down to your investment goals.
The smartest move isn’t about choosing one over the other — it’s about aligning your loan type with your overall strategy.
Interest Only suits growth-minded investors chasing flexibility, tax benefits, and portfolio expansion.
Both loan types can deliver. The trick is knowing what you’re really playing for: growth, cash flow, or debt reduction.
Not sure which side of the fence you’re on? Talk to the finance team at DPN. We’ll cut through the noise and help you structure a loan strategy that’s bold, bankable, and built for your future.
The information provided is general in nature, it does not take your personal objectives, circumstances or needs into account. It is not specific advice and is not intended to be passed on or relied upon. Any indicative information and assumptions used may change without notice, particularly if based on past performance. Interest rates are subject to change. Finance approval is subject to terms and conditions and meeting lender approval criteria.
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