Most banks offer several investment loan options including fixed rate loans, variable rate loans and split loans (a combination of fixed and variable). You can also choose how you want to pay off your loan via two repayment methods called ‘principal and interest’ or ‘interest only’. Paying off principal and interest is when you repay the original amount you borrowed, on top of interest. Meanwhile, an interest only loan is when you only pay back the interest charged on your home loan, which can reduce the overall loan balance because you’re not making any ‘principal’ repayments. Speak to a Home Loan Specialist or broker to work out which investment loan is right for you.