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

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

In the last few years, interest-only mortgage loans accounted for around 40percent of all of the outstanding Australian mortgages.

Which was 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 released by banking institutions that might be interest-only.

These limitations had been initially set up in March 2017, and lending that is interest-only because of this, but at the time of January 1 2019, these limitations have already been lifted, and institutions like ANZ had been quick to capitalise by loosening their financing criteria for interest-only loans. Continue reading “Beginner’s help guide to interest-only mortgage loans. What exactly is an interest-only home loan?”