hi guys, I just learned that there is ‘interest only loan’? but I am not quiet sure how it works with investment properties, and whether it still available or not.
can someone please brief explain it to me about it? or let me know is there any source of information about it.thank you very much ![blush2]
Hi startxing,
Interest only loans are just that; all you are paying off on your loan is the interest; you never actually pay off any of the principal (i.e. the amount you actually borrowed, including fees etc). Yes they are still available, and there are many investors who prefer to use IO loans over P&I (principal and interest) loans.
Many financial experts here can help you further, explaining who offers IO loans, and who has the best deals (rates etc).
Cheers,
JO
Most offer the IO term for a period of up to 5 years – some 10.
It then automatically reversts to a P&I loan with somewhat higher repayments as the Principal now has to be repayed in a shorter term.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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