Short answer：Interest-only payments can reduce current outgoings without reducing principal. Suitability depends on the contract, repayment source and affordability when principal payments begin.
Compare the same debt
For a hypothetical HK$1 million balance at 4% annual interest, simple annual interest is HK$40,000; principal remains outstanding. Actual day counts, fees and payment terms follow the contract. This is not a bank quote.
Identify the principal repayment source
List cash or assets available at maturity and test a lower sale price, refused refinancing and rate changes. Future refinancing is not a committed repayment source. Request the full repayment schedule, including the period after any initial concession.
Before deciding
- Check the interest-only period and maturity balance
- Compare lifetime interest and charges
- Prepare for refinancing being unavailable
Sources and method
Sources support the specific rules described. Checklists and hypothetical calculations are editorial explanations, not measured market results or individual approvals.
Revision：Removed unsupported experience, case outcomes and statistics; corrected the topic-specific rules and limitations described above.
Scope：General information only, not personalised legal, tax, immigration, admissions or investment advice.