Interest only loans are ideal for covering a short term situation. For example, you may be buying a new home before selling your existing property or for an investment property.

By paying interest only, your loan payments are minimised until the money becomes available to repay the loan.

How an interest only loan works Each of your regular payments only covers the interest owing on the amount you borrowed. You repay all the money you borrowed, called the principal, in one final payment at the end of the term.

For illustrative purposes only.

Set-up options

• Choose fortnightly or monthly interest payments.
• Decide the short term date by which you will have repaid the loan, Interest only periods are available for up to 5 years.
• Maximum term of 5 years.

Interest options

• Fixed rate - stays the same for the period you select. However, if you want to repay some or all of the loan while it is still on a fixed rate, you may have to pay an early repayment adjustment.
• Variable rate - can increase or decrease over time with the market. Let's you repay some or all of the loan at any time without penalty.

Use our handy calculators to compare different loan types and find the one that's right for you.

There are also various ways to manage your home loan once it's underway.

Home loan rates

View the latest intetest rates

Home loan fees

Loan processing fee
When a home loan is first arranged, a loan processing fee of $400 applies. For a split facility you pay only one loan processing fee. A low equity fee may also apply.

Alteration to borrowers or security held for a loan:

Discharging your loan:

At the end of your loan we can hold your mortgage documents for future lending or safe keeping, at no additional charge.

*Urgent requests for settlement statements or changes to loan arrangements will incur an additional fee of $25.00.

Fixed interest rate loans

For partial or full repayments of a fixed rate loan before the end of the fixed rate period an early repayment adjustment administration fee of $50.00 will apply. This will be charged in conjunction with any early repayment adjustments.

Changing loan types

If you change your loan type or move to a new fixed interest rate you will incur a switch fee of $250.00.

Unpaid local body rates

If ASB has to collect unpaid rates on behalf of a local council these fees will be applicable:

• Local body rates demand notice - $50.00.
• Plus additional charge if ASB has to make a rates payment - $60.00.

Loan default enforcement

If you default on your loan and the deduction account is overdrawn or in excess of any agreed limit, or the balance owing under your loan account exceeds the loan amount or the reducing limit, interest will be calculated daily on the overdrawn amount at the Unarranged Overdraft Interest Rate, until it is paid in full.  Please note this interest rate is subject to change at any time.