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What is a non-repayment mortgage?

Non-repayment mortgage

The other type of mortgage is the non-repayment mortgage, "aflossingsvrij". The non repayment mortgage is not available for the whole mortgage amount. With this type you only pay the interest on the mortgage amount and have to make your own arrangements to pay the mortgage off at the end of the term. This is useful for people who have investments that they want to capitalise on. The idea behind this mortgage is that the value of the property will increase in time and this will cover the repayment. Due to the economic crisis this type of mortgage is less interesting for a bank. Also politics wants to reduce the number of non-repayment mortgages.

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