Ten Years of Interest Only: When the Right Lending Structure Supports a Better Plan

What if paying off your home loan as fast as possible isn't always the best financial strategy?

For clients in their 50s approaching retirement, cash flow can be incredibly valuable.

AMP Bank's ten year interest only home loan raises an interesting planning opportunity. Could reducing compulsory principal repayments allow clients to redirect cash flow towards superannuation, investments, liquidity and other retirement priorities?

It highlights why mortgage brokers and financial planners should be working together before clients retire.

Not after.

Debt belongs inside the plan

At Lydian we believe debt should not sit outside the financial plan. It should be structured to support it.

Interest only periods mean the loan balance does not reduce, and repayments step up afterwards. Whether it suits you depends on your circumstances and your broader plan, so this is one to work through with a licensed financial adviser alongside us.