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.
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?
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.