Principal & Interest Loan vs Interest-only Loan - What will work best for you?

Loans come in different forms to meet different needs. The most common loan types are Principal and Interest (P&I) Loan and an Interest-Only Loan. The key difference between the these loans lies in how repayments are structured:

So what’s best for you? Choose P&I if you want lower total interest and to own your property outright by the end of the term. This option is most suitable for homeowners wanting stability and a reduced debt.

Choose Interest-Only if you want lower initial repayments, typically for investment purposes, but are prepared for higher future payments. Most suitable for investors, short-term borrowers (house flippers), homeowners needing cash flow relief.

Need help understanding what loan type would be best for you? Contact WestGen Finance and we’ll work to find the most genuine solution for you.