Interest Only

Interest Only Loans offer the lowest payment possible for an initial period of time. After this "interest only period" your monthly payment will be recalculated to include full principal repayment over the remaining years on the loan. Although you are not required to make principal payments during the interest only period, you can make them as you so choose. Each time you make a principal payment, your interest only payment will be recalculated based on the remaining principal balance. Whether you are looking for financial flexibility or more control in managing your payments, Interest Only Loans offer a variety of options. This versatile feature is available on Fixed Rate and Adjustable Rate Mortgages.

Consider an Interest Only Loan if you:

• Want to buy a more expensive home than you could afford with a fully amortized loan
• Expect that your home will appreciate significantly during the interest only period
• Desire the minimum payment available in the short term so that your additional cashflow can be used for repayment of other debts or investment opportunities
• Require flexible payment options – If you are self employed, paid by commission, or have seasonal income, Interest Only Loans allow you to decide when you make principal payments and the amount that you pay. This offers you maximum control over your cashflow.
• Are purchasing investment property. In the event that your investment property is vacant for a short period of time, you will only have to pay the low interest only payment.