Discount & Honeymoon Loans, Introductory Rate Loans

These are variable rate loans with a discounted interest rate off the standard variable rate (commonly over 1%), lasting a certain period of time, usually one year. After this period, they normally revert back to standard variable rates. Sometimes, depending on the lender, rates can be fixed or capped during the initial/honeymoon period.

Advantages of Into Loans are:

• They have a low rate for the first year to assist borrowers with there repayments.
• In some cases you may have less home loan featues or non at all.

Disadvantages of Intro Loans are:

• They will revert to the standard variable rate after the intro rate expires.
• In some cases a lower rate is not always the answer to paying off your home loan quicker.
• They may have higher upfront and ongoing fees.

If you would like to speak to one of our Home Loan Consultants, please contact us to enquire about your finance needs or phone our office on (02) 9609 4655.