A zero-coupon mortgage is a long-term commercial mortgage that defers all payments of principal and interest until the maturity of the mortgage. The loan's structuring is as an accrual note, meaning interest due rolls into the outstanding amount borrowed. At maturity, the borrower either pays off the note or floats another loan at the current interest rates.

Commercial projects may use zero-coupon mortgages when the cash flows needed to repay the debt aren't available until the project nears completion.