🏦 What Is an Interest Reserve Account? Everything Borrowers Should Know 💡

Bill Rapp - Commercial & Residential Mortgage Broker

Published on: 16/10/2025

What Is an Interest Reserve Account? An interest reserve account is a financial tool used primarily in construction and bridge loans to cover interest payments during the loan period. Instead of making monthly payments out of pocket, the borrower’s interest payments are pre-funded and drawn automatically from this reserve account.