What’s the difference between interest-only vs repayment mortgages?

People often ask us to compare interest-only vs repayment mortgages and what the difference is.

The Interest-only vs repayment mortgage

An interest-only mortgage is where you only pay off the interest the grows on your mortgage. This can mean that your monthly payments are lower. However you will need to eventually repay your mortgage once your the term comes to an end.

More about the repayment mortgage

The most common option is a repayment mortgage. This is where you have the security of paying off a bit of the loan as well as the interest with each monthly payment. If all repayments take place, at the end of the term you will own the property completely.