Home Loan Options for Adelaide Investors and Families: Introductory / Honeymoon Loans
If you’re looking at taking on a mortgage then introductory or honeymoon home loans may be a good option for you.
Introductory mortgages allow borrowers to spend the first year of their mortgage with a lower than usual interest rate.
After one year, the special low rate of an introductory home loan reverts back to the normal rate offered by your lender. At this time, you will usually switch to a fixed or variable home loan.
Taking up the offer for an introductory loan can mean that you are able to make savings during your first year or even make higher payments than necessary during this time to reduce the principal.
Essentially, it means that the first year of your mortgage will be an easier one as you transition into paying standard interest rates.Book a FREE appointment with a professional mortgage broker now!
An introductory home loan is usually the mortgage option with the lowest interest rate on the market, and some lenders will provide an offset account against this type of loan.
Lenders offer these services as it helps them to sign up new customers, so one of the most important things to remember is to look for a loan that reverts to a competitive rate after the initial introductory period.
Honeymoon mortgages can come with higher early repayment or exit fees than normal loans. They can also have higher establishment charges and ongoing fees and their repayment options for the duration of the special interest rate can be limited.
AAA Mortgage Solutions can help you to decide if the introductory low interest rate is comparable when the fees and charges are included.
Give us a call on 1300 555 888 if you think that an introductory loan is right for you or you would like to talk about your options.