An interest-only period means that you do not pay the instalments on the loan – only interest rates and costs. In other words, you only pay the loan costs and postpone repayment of the loan itself. An interest-only period can be of great help for a temporary period if, for various reasons, your household income is reduced for a period. However, remember that the interest-only period means that the total cost of the loan increases. Read more about interest-only periods