In order to improve monthly cashflow on a property, one of the best methods used, is to convert your mortgage loan to an Interest Only Property Loan.

Example :


Traditional Capital and Interest Repayment Model

Bond                     R 50 million

Term                     10 years

Interest                Prime plus 1 % ( 11.25 % )

Repayment         R 695 844 pm


Interest Only Model

Bond                     R 50 million

Term                     5 years ( plus 5 years if account handled well)

Interest                Prime plus 1 % ( 11.25 % )

Repayment         R 468 750 pm


32 % Cash Flow Improvement – R 227 094 pm x 12 =  R  2 725 128 pa


Loan Criteria

Loan To Value                                                    Maximum  75 %

Ownership                                                            3 years minimum

Property Type                                                   Commercial and Industrial Properties

Vacancies                                                            Not more than 5 %

Interest                                                                Prime plus 1 % to Prime plus 3 %

Fixed Interest                                                    Option to Fix Interest Rate for 5 years.

Loan Values                                                        R 30 million to R 80 million



Massive Cashflow Improvement

Unlock Capital – Equity to Cash

Turn Negative Cashflow into Positive Cashflow

Refinance Commercial Property Loan

Refinance Industrial Property Loan

Quick responses


General Notes


The interest only property strategy on commercial property is unique in South Africa. We facilitate your cashflow improvement strategy with an interest only payment scheme.


Interest Only Commercial Property Loans and Interest Only Industrial Property Loan are available, on commercial or industrial properties that have been owned for longer than 3 years.


Student Accommodation, Blocks of Flats, Hotels can also make use of Interest Only Property Investment Loans.


To secure a mortgage bond interest only, will require the same application process as a normal bond application BUT is a much quicker process.

Service only the debt portion of your commercial property loan. No premium to fix your interest rate





Loan Values

R 30 mill to R 80 mill


How Quick

Approx 30 days from when all the documents requested, have been provided


Is there any risk to me

No, as long as you comply with all the terms and conditions of the mortgage bond agreement


Can I purchase a property using the Interest Only Mortgage Loan

Not at this time. It is only for existing property owners.


Is this applicable to homes

Sorry, no. Only commercial and industrial properties.


What types of property can be used

Warehouses, Shopping Centres, Factories, Hotels, Student Accommodation, Office Blocks, Apartment Blocks etc.


What is the advantage

Cashflow is immediately improved by approx 30 %


How long is the Interest Only Property Mortgage

5 years with option for another 5 years.


When do I pay the capital back

Within 5 years ( at end of 5 year term )


Can I extend the bond for more than 5 years

Yes, if the account is been well handled, it is possible for another 5 years.


How do I pay the capital back

By securing a bond from a normal banking institution