Repayment-free mortgage
What is an interest-only mortgage?
With an installment-free mortgage, you pay only a monthly amount of interest on the amount you borrowed. At the end of the term of the mortgage, you repay the borrowed amount in one lump sum. Over the last 20 years, the rules for taking out an installment-free mortgage have changed considerably. The portion of the mortgage that may be interest-free is no more than 50% of the home value. For many people who have this form of mortgage, part of their mortgage is grace free and another part has another form of mortgage.
