Most Kiwis automatically choose a principal-and-interest mortgage. But for investment properties… that’s not always the strategy investors use.

In this episode, Ed and Andrew break down the real difference between interest-only vs principal-and-interest lending.

You’ll learn:

Why many investors prioritise cashflow over paying down rental debt faster
The hidden risk when an interest-only term ends
The strategies investors use to extend interest-only lending over time

Main idea? Interest-only lending isn’t about avoiding debt forever, it’s about where you choose to direct your money. Used well, it can improve flexibility and cashflow. Used poorly, it can create serious pressure later on.

For more from Opes Partners:

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