Browsing Home Loans » Introductory Rate Home Loans
Related Categories: Home Loans, Construction Home Loans, Fixed Rate Home Loans, Bridging Loans, Low Doc Home Loans, Line of Credit, Variable Rate Home Loans
When it comes to choosing the right type of loan to purchase a home, there are different types of mortgages that are available. One of the more popular types is the introductory rate loan which many Australians have used to buy property for decades. The concept of the loan itself is fairly simple, but is it the type of loan that will work best for your needs?
Essentially, these are loans that provide a lower initial interest rate period which is usually at a level considerably less than standard rates for a pre-determined period of time. After this time has passed, a new, higher interest rate is put into effect for the rest of the loan. The discounted interest period generally lasts from six months up to four years depending on the terms of the loan itself.
There are two types of introductory rate loans which have similar terms, the discounted fixed and the fixed discounted rates. The discounted fixed rate is one that will not change under market forces while the fixed discount will vary depending on what happens to the standard rates. So, if the standard rate should drop so too with the fixed discount rate fall at the same amount.
The biggest benefit to this type of loan is that you can start off with lower payment that may allow you to gain financially over the first several months. You can use this time to build up your savings and then pay off the loan after the higher rates go into effect. For many families, the introductory period is one that can help them settle into the loan.
The loans themselves are quite popular and many Australians have used them to purchase real estate property. However, there are some downsides to choosing this type of loan for your needs.
The most important factor in either type of loan is that the introductory rate will disappear after the pre-selected period of time and revert to a higher rate. So, whatever advantage you enjoyed with the lower rate will be gone for the bulk of the time that you are paying the loan. Plus, the rate that will be reverted to once the introductory period ends is usually higher than the standard rate. This means that in the long run, you’ll be paying the overall same and perhaps somewhat higher rate as you would a standard loan.
In addition, there are lenders who will place a limit on the amount of excess money you can use to pay off the loan during the introductory period which further limits the advantages of having this type of mortgage. There is usually an exit fee if you decide to pay off the loan during the introductory period which acts to discourage trying to refinance the loan to another one with an introductory rate before the higher rate kicks in.
Overall, introductory rate loans are well suited for those who are choosing their first mortgage and it can help them start off with lower payments. You should look over all the advantages and disadvantages before choosing this type of loan for your needs.
39-41 York Street
Sydney, New South Wales 2000
Australia
Bank of China (Australia) Limited offers a number of deposit products that includes online saver accounts, demand deposits, cash management, overseas
219-223 Castlereagh St
Sydney, New South Wales 2000
Australia
Bank of Sydney offers a wide range of general banking products and services and pouts great emphasis on providing products that are customized to meet
2 Park Street
Citigroup Centre
Sydney, New South Wales 2000
Australia
Global Consumer Group – This group consist of Citibank and Diners Club brands combined offering consumer banking services, including transaction and
580 George Street
Level 32,
Sydney, New South Wales 2000
Australia
HSBC Bank Australia Limited, previously known as Hong Kong Bank of Australia Limited, got its license in 1986. But, it has been established way before
2 Chifley Square
Sydney, New South Wales 2000
Australia
Agricultural Bank of China Sydney Branch got its license to carry out banking business from the Australian Prudential Regulation Authority on 25th
455 George Street
Queen Victoria Building
Sydney, New South Wales 2000
Australia
Citibank is the largest issuer of credit cards in the world, but offers a number of other services to their customers, including saving accounts, term
Level 32, 580 George Street
Sydney, New South Wales 2000
Australia
The Hongkong and Shanghai Banking Corporation Limited is a Hong Kong based Company established in 1865. It is the founding member of the HSBC Group.
22 Old Shoal Point Rd
Bucasia, Queensland 4750
Australia
Barry Lynam Home Loans and Financial Services offers a wide range of residential home loans and personal loans.
5 Lime Street
King Street Wharf Level 3, Suite 323
Sydney, New South Wales 2000
Australia
AMO is one of the leading loans and mortgage brokers in Australia. The company is primarily based in Sydney, NSW. Since its inception in 1998, the
25 Ferguson Street
Unit 6 Level 1
Albany Creek, Queensland 4035
Australia
North Brisbane Home Loans is an award winning mortgage brokering company based in Brisbane. With access to over 20 lenders the team at North Brisbane
400 King William Street
Adelaide, South Australia 5000
Australia
Credit Union SA - Find loans, credit cards, insurance
Level 2, 5 Davidson Terrace
Joondalup, Western Australia 6027
Australia
McKinley Plowman is a leading firm of accountants in Perth.
259 Queen St
Brisbane, Queensland 4000
Australia
Bank of Queensland Limited is one of the oldest financial
The Bendigo Centre
Bendigo, Victoria 3550
Australia
Bendigo and Adelaide Bank Limited came into existence in
2 Chifley Square
The Chifley Tower
Sydney, New South Wales 2000
Australia
Known widely as the specialist banking service provider, BOQ
88 Phillip Street
Sydney, New South Wales 2000
Australia
Established in Australia in 1988, the Royal Bank of Scotland
(5672 Finance Enquiries since 22-02-2016 10:39AM)
Shop 44 Sunshine Plaza
324-328 Hampshire Road
Sunshine, Victoria 3020
Australia
Let us take the hassle out of your new home purchase,
(626 Finance Enquiries since 26-07-2017 04:38PM)
345 George St
Sydney, New South Wales 2000
Australia
Standard Chartered Bank is a British multinational banking
(3571 Finance Enquiries since 10-04-2016 11:54AM)
117 Camberwell Road
Hawthorn East, Victoria 3123
Australia
Victoria Teachers Mutual Bank offer wide range of banking
(1923 Finance Enquiries since 02-06-2015 01:23PM)
231 North Quay
Level 1
Brisbane, Queensland 4000
Australia
Queensland Police Credit Union Limited - Offers loans,
(1801 Finance Enquiries since 03-11-2016 06:59AM)
Preparing for retirement is a challenging thing for most people. It’s so easy to get caught up in the present that you forget about your financial well-being in the future. The unfortunate thing is that most people do not spend enough time planning for retirement.
The forex market is the most active and liquid exchange platform in the world. Similar to the ASX, the forex market allows investors to trade security instruments; specifically, forex traders deal in fiat currency. this paper discusses profiting from currency exchange fluctuations in the Forex
Looking to cut inefficiencies in your business? Of course you are, or at least you should be. Cloud computing allows you to run your small business more efficiently while saving you time and money, read on to see how Cloud Computing can help your business boost it's output.
