deal by deal
5.95%
Follow Mike on Linkedin

Capitalised Interest Loans

What are Capitalised Interest Self Employed Loans?

Capitalised Interest Loans are arranged for clients who prefer to have their mortgage interest costs built into the principle loan amount. They can be useful to generate cash in tight cash flow situations. Ideal for self employed loans.

Ultimately the servicing for a facility like this comes from the equity that you currently have in an existing property.

  • Exit strategy is paramount when considering a capitalised mortgage advance.
  • The capitalised interest component is withheld by a law firm (normally the lenders lawyer) The capitalised interest amount can be put on bank deposit for the term of the loan. Self employed loans can be secured over  commercial property, or residential property , or both.
  • Monthly payments are not charged. They are  deducted from the interest held from the capitalised interest retained.
  • Monthly interest gained from this deposit can be offset against the monthly principal interest amount to help reduce monthly interest costs.
  • Capitalised Interest self employed loans are only arranged for a term of from 6,  12, or 18 months.
  • Ultimately the interest cost of a self employed capitalised interest loan will come out of the equity you hold in your property.
  • We would always want to engage with your lawyer to seek approval for such a loan.

How to get your Capitalised Interest Self Employed Loans Application Started

All You need to get underway.

  1. Type in the basics as per the initial application form below.
  2. A brief phone call to Mike to explain your situation: 0800 998866
  3. An Email handshake will start and complete the process with minimum fuss Email us on: mikep@win.co.nz