ASIC's interest-only guide for property investors

ASIC's interest-only guide for property investors
ASIC's interest-only guide for property investors

The Australian Securities and Investments Commission has released a handy guide to interest-only loans for property investors.

According to ASIC, one in four loans are interest-only for owner-occupiers and two in three loans are interest-only for investors.

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ASIC's interest-only guide for property investors

According to ASIC, before applying for an interest-only mortgage, potential investors need to understand if they can afford the higher repayments when the interest-only period ends, will the short-term benefits outweigh the long-term costs and if you can be trusted not to dip into the offset account?

Click to enlarge

ASIC's interest-only guide for property investors

 

Click to enlarge

ASIC's interest-only guide for property investors

 

Click to enlarge

ASIC's interest-only guide for property investors

 

ASIC has also released a calculator to help potential investors work out three key factors behind an interest-only mortgage, as well as a a checklist for property investors considering interest-only payments for mortgages.

Michael Crawford

Michael Crawford

Michael is the real estate reporter for western Sydney and loves writing about homes and the people who live in them. A former production editor and news journalist, he enjoys writing about real-world property purchases as well as aspirational buys and builds. Following a recent move from Sydney’s northern beaches, Michael now actually enjoys commuting.

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Mortgage Rate Interest Only

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