Product:  Introductory Rate

Introduction

These products are also known as "honeymoon rate" loans and provide a discount interest rate for a period of 6 or 12 months, which switches to the standard interest rate at the expiry of that period.

Key Features & Advantages

First home buyers are reduced repayments which allow them to buy furniture and pay legal fees and mortgage insurance.

Considerations

Ensure that the interest rate applicable at the end of the discount period does not exceed the standard interest rate so the value of the discount is dissipated.

Suitable for

First home buyers

Example of product

ANZ Bank's Easy Start

Yes Home Loans'  Discount Access (1 year)