Interest-Only Mortgage
Repayment on an interest-only period.
NZ$
%
months
Monthly repayment (interest only)
$2,829.17
Over 24 months, total interest: $67,900. Principal balance does not reduce.
| Monthly interest | $2,829.17 |
|---|---|
| Total interest | $67,900 |
| Balance at end | $500,000 |
About this calculator
During an interest-only period the principal does not reduce. Repayment = balance × rate ÷ 12.
- Common for property investors and short-term cash-flow management.
- NZ owner-occupier interest-only periods are typically capped at 1–2 years.
Frequently asked questions
Is interest-only cheaper overall?
No — total interest is higher because principal isn't reducing. It just lowers the monthly outgoing.
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Calculator NZ provides general information only. For decisions with significant financial, medical or legal consequence please consult a qualified professional.