The general public and investors are two different property owners. For residential purchases, the fixed-rate mortgage loan remains more popular, followed by the variable-rate loan. Investors are equipped to handle risk. They follow the rise and fall of interest rates daily. When an investor purchases a property, it’s often an investment that remains in the portfolio as an asset. Otherwise, it gets flipped for a profit. An interest-only home loan receives side-eye looks because it caused a stir across several real estate markets in the late 2000s, including Australia. The interest-only option was born out of the investment market. Some agencies took the option mainstream, and the rest is history. The outcome of the housing crash didn’t land squarely on the shoulders of the its product. For investors, the interest-only period affords them seven to ten years of low mortgage payments. This is enough time to fix the property and put it back on the market at a financing discount. Investors attempt to sell a property before the payments become burdensome. Ideally, the proceeds pay off the outstanding loan amount and deliver a profit. Interest-only loans deliver low monthly repayments during the interest-only period. This helps an individual save money and sets them up for future repayments that will be higher. Professionals use the loan as a bridging loan or construction loan. It gets them from the purchase to the sale without additional out-of-pocket costs. This loan may qualify for attractive tax benefits. Investors receive special tax considerations. The interest payments are sometimes tax-deductible. To be sure, consult with a tax professional before obtaining the loan and after the purchase.