Author Topic: would an interest only mortgage/loan make sense in my situation?  (Read 749 times)


  • Bristles
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  • Posts: 357
I have a mortgage on a house.

The house could be sold today for about 800k more than when I bought it.

I live in the house with 3 international students and also rent out the legal basement suite.

The rents I get cover all the expenses of mortgage, insurance, internet, electricity. I'm over 55 and can/have deferred paying my property tax until I sell/die. So my expenses are low.

I'm in Canada and my 5 year mortgage is up for renewal in about 10 months.

I had to work really hard to buy the house, then hard again for quite a few years to get the house to where it is now (rents cover all the bills and 800k equity + nice place for me to live) 

Since buying the house 11 years ago a few things have changed. 

1. I'm 11 years older and my priorities have changed somewhat, aware of having less time to actually do the things in life that I want to do, be with the people I want to be with.  Also I have my aging father in the U.K.
2. Daughter and grandchildren have moved to the east coast (I'm on the west coast)
3. I was happy to leave the U.K. 25 years ago, I went back last year on a holiday, first time in 11 years and I think it's fair to say that things have changed, the town I lived in over there has become quite an artsy upmarket place and I really enjoyed being there.   So the obvious choice of living where I am now in Vancouver -V- the place I left in the U.K.  isn't quite as obvious anymore.

I'm thinking that I need some time and freedom to explore my options. Maybe spend some time on the east coast to see the kids and see how it goes, maybe a month or two in the UK and see how that fits also.

Would an interest only mortgage make sense I wonder?  That way I could lower my expenses more and just focus on getting my life on track.

I expect to sell this house in the next 5 years, so my mortgage is more about holding the house, and not about paying the mortgage down to zero.

Any thoughts?


  • 5 O'Clock Shadow
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  • Posts: 64
Re: would an interest only mortgage/loan make sense in my situation?
« Reply #1 on: July 01, 2019, 08:49:49 AM »
It's hard to say if this works out on paper without seeing the math, especially at the 5-year-mark.

It seems like it might not be a bad idea, because in the first 5-years a lot of your mortgage payment would be interest, and it sounds like you have a lot of equity in the home.

If it were me, I would run the numbers both ways, and see which way works out best.