interest only loans

Leonor,

Not really a type of loan but rather a decision you can make on nearly any loan.

They serve a purpose and many folks choose IO to suit their needs.

Useful when maximising deductibility or maximising cashflow.

Very useful when still paying off a loan as you are able to direct all principle payments into the non-deductible debt.

Cheers,

Simon Macks
Mortgage Broker
mortgagehunter@iinet.net.au
0425 228 985

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.