Interest Only Mortgage

With this repayment option you only repay the interest portion to the lender each month with the capital balance remaining the same.

This provides for better cash flow management in the early years, however you are responsible for the repayment of the capital when the mortgage term or the interest only term expires.

4. Interest Only Mortgage
Warning: The entire amount that you have borrowed will still be outstanding at the end for the interest-only period.