PHOTO: Property investors have been sold on the lower interest rates for principal and interest loans. ABC News: Nic MacBean
Terri Unwin recently converted the interest-only loans on her investment properties to principal and interest, even though there is still more than two years left on the interest-only periods.
She is one of a growing number of people making the switch, after regulatory changes saw the days of relatively low interest-only lending rates disappear.
Once a magic pill for investors, interest-only loans allowed people to get into the property market or increase their portfolio with lower upfront repayments, generally for up to five years
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