What is the term of the interest accruing mortgage?

The term of an interest accruing mortgage is commonly set at five years. This means that during this period, the borrower will not make any principal repayments but will only be responsible for paying interest on the loan. At the end of the five-year term, the outstanding balance—including any accrued interest—must be either paid off in full, or the mortgage may be renewed under new terms.

Setting the term at five years is also aligned with many standard mortgage products offered by lenders, which frequently use five-year intervals for rates, terms, and repayment options. This period provides a balance between short-term and long-term mortgage agreements, giving borrowers flexibility while also allowing lenders to manage their risk and adjust rates with market conditions.

In contrast, the other time frames indicated (3 years, 4 years, and 6 years) are less commonly used for this specific type of mortgage and may not represent common practices or typical product offerings in the mortgage market. Hence, the five-year term is typically seen as the standard duration for interest accruing mortgages.