Beginner’s guide to interest-only mortgage loans. What exactly is an interest-only mortgage?

Beginner’s guide to interest-only mortgage loans. What exactly is an interest-only mortgage?

In the past few years, interest-only mortgage loans accounted for around 40% of most outstanding Australian mortgages.

That has been before regulatory bodies introduced measures to slow this form down of lending. The Australian Prudential Regulation Authority (APRA) imposed a 30% limitation regarding the amount of mortgage loans given by banking institutions that might be interest-only. Read more