Positive Mortgage Loans ??

Has anyone heard or are using a new loan product on the market
” Positive Mortgage’s “

From what i can understand the loan is designed so that you to only have pay a portion of the interest you owe and you can add the rest of the interest to the original amount you owe.

Example: Purchase property for $500,000 with an 80% LVR loan of $400,000. You are only required to outlay or pay 3.70% interest on the loan for the first year. The unpaid interest is added to the original loan amount. The second year you pay 4.95% of the interest owing can capitalise the additional interest then increasing the interest repayment each year up to 7.45% after 5 years. If the investment property is worth the same amount after 5 years your LVR would have gradually increased to 89.30%. However if you have experienced a 10% or more in growth then your LVR would be less than 60% after 5 years……nice. There is also the option to restart the clock after year 2 if the property has increased in value and the LVR is below 80% LVR.

Like I said at the start if anyone is using the product can they let us all no the goods and bads……of this product [comp]

Thanks
Pagan