Interest Only Mortgage – Mortgage

My Mortgage Blog

Interest Only Mortgage

Recently some lenders have started to offer interest only mortgages in Canada. Many clients can benefit from lower monthly payments and the increased financial flexibility of using an interest only mortgage.

The Interest-Only mortgage is suitable for homeowners and investors looking to purchase or refinance a property with improved cash flow. Since you are only making a payment of the interest, your monthly mortgage payment will be much lower, providing additional choice and financial flexibility.

There are many reasons someone would benefit from an Interest-Only mortgage and freeing up their money for other purposes.

  • Property investors that own multiple rentals and want to keep mortgage expenses low (note property investors can also benefit from using 100% of rental income to qualify for the mortgage and in additional to increased tax deductibility of interest)
  • Clients that are carrying other high interest debts (i.e. loans and credit cards) and will use the extra cash to pay these down
  • Clients with cyclical or seasonal work who would like to pay down their mortgage using their 20% repayment feature on a schedule that fits their irregular cash flow
  • Clients living in markets with high real estate prices can purchase a home in their desired neighbourhood with manageable monthly payments
  • Clients that have goals to improve wealth over the long term and can put that extra cash to better use through investing opportunities, rather than using it to repay principal on a mortgage
  • Clients that seek greater control of their cashflow and aim for optimal
  • management of their liquidity
  • Clients looking to lower monthly payments to save for home renovation and to improve property value
  • Let me know if you would like an illustration of how an interest only mortgage can improve your cash flow and increase your financial flexibility.


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