Real Estate Investing

Interest-Only Loan

Definition

What is Interest-Only Loan?

A loan requiring only interest payments for a period, with principal due later.

Example in practice

The borrower pays interest for three years before principal amortisation begins.

Keep learning

Land and buildings held for use, rental income, development, or appreciation.

Property designed mainly for people to live in.

Property used for business purposes, such as offices, shops, or warehouses.

A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.