P&I repayments are when you pay both the principal and interest on the loan each month. This means that your loan balance will go down over time, and you’ll be closer to owning your property mortgage free. P&I repayments can be a good option if you want to build equity in your property and pay off your loan as fast as possible. Interest only repayments involve paying only the interest on the loan for a certain period, without reducing the principal. This can result in lower repayments, but it also means that your loan balance will remain the same. Interest only repayments can be a good option if you want to maximise your cash flow by keeping your monthly payments low.