Interest-only Mortgage

There are 2 types of mortgage: interest-only or capital repayment. Interest-only mortgage stays the same throughout the mortgage term. Interest and a premium to an investment vehicle are paid monthly. At the end of the term the proceeds from the investment vehicle are intended to repay the mortgage. The amount will depend on the performance of the investment vehicle. If you choose an interest-only mortgage you will be responsible for ensuring that you have sufficient funds available to repay the balance of your mortgage at the end of the term.


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