Loan period with no principal amortisation.

  • Loan period with no principal amortisation.
  • Standard 2–5 year IO at the front of a 10-year Class A loan.

Interest-only (IO) period

Finance · US

Short definition

Loan period with no principal amortisation.

Full definition

Standard 2–5 year IO at the front of a 10-year Class A loan. Improves DSCR coverage and equity yield. Refis often face IO-to-amortising transitions.

Why this matters for Class A leasing

Interest-only (IO) period is part of the finance vocabulary that institutional Class A occupiers, landlords, and advisers use across US markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks the US definition alongside the global standard so cross-border occupiers can translate quickly.