GlossaryInterest only

What means Interest-only?

If you enter a grace period, this means that you cannot repay. When taking out (linear) mortgages, the interest-only option is often included. If you want to repay faster, you must include a clause in the mortgage offer in advance to be able to repay an amount per year without penalty.

There are advantages and disadvantages to interest-only.


  • Low monthly costs. Only the interest has to be paid.
  • Usually no additional insurance is required.
  • With interest-only, you are probably entitled to a tax deduction. Inquire about this with your accountant.


  • You don't pay off anything and you don't build up any capital.
  • If you sell your object, the outstanding amount will be filled with proceeds from the sale of the property.

Banks usually lend to companies up to 60% – 70% interest-only. You must have your own investment for this.