Is this the end for INTEREST-ONLY LOANS?
As the regulatory environment for lending shifts to maintain stability in the economy, the amount if interest- only loans approved has dramatically decreased. Regulatory changes have made interest-only loans costly for property investors, making principal and interest loans a more popular route. This, however, hasn't always been the case. The trend about 10 years ago was for advisers and brokers to recommend interest-only investor loans as only the interest is tax deductible.