Savings Mortgage

A savings mortgage separates interest payments from principal repayment. The borrower pays recurring interest to the lender throughout the loan term, while concurrently depositing fixed annual amounts into a dedicated savings account that accrues interest.

Upon mortgage maturity, the accumulated savings are used to pay off the full outstanding principal in one installment. This structure appeals to commercial property owners and investors seeking tax efficiency on mortgage interest whilst maintaining disciplined capital accumulation for future repayment obligations.