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Principal & Interest OR Interest Only repayments. Which should you choose?

Interest Only vs Principal & Interest Repayments

Depending on the type of mortgage you select, you can generally choose between making Principal & Interest (P&I) and Interest Only (I/O) repayments. A P&I repayment consists of two parts – an interest component and a principal component, whereas an I/O repayment consists of an interest charge only.

The main benefits and disadvantages of P&I and I/O repayments are outlined below.


Principal & Interest Repyaments (P&I)



If you’re still not sure which one might be best for you, let us know.  We can help!

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