The National Bank provides residential property investors with the option of an interest-only loan.  It’s available for a term of up to 10 years.

Some property investors prefer to take out interest-only home loans on their residential properties.  The reason is primarily that because they aren’t repaying any principal, it frees up money to buy other investment properties and build up their portfolio faster.  Alternatively, they may want to use that money to improve existing rental properties or repay personal debt.

The interest is calculated daily and charged at the end of each month (to a transactional account).

While interest-only loans can help investors build up their rental property portfolio more rapidly, it’s important to remember that none of the principal is being repaid during the interest-only period – so you pay more interest in total. And, you will need to be able to repay the principal in full at the end of the loan term.

This material is for information purposes only. You should seek professional advice related to your individual circumstances. While The National Bank has taken care to ensure that this information is from reliable sources, it cannot warrant its accuracy, completeness or suitability for your intended use. To the extent permitted by law, The National Bank does not accept any responsibility or liability arising from your use of this information. Our lending criteria, terms, conditions and fees apply.