Please select from the list below to find out more about the
different loan types.
|
Introductory loan |
|
| The interest rate is usually low
to attract borrowers. Also known as a honeymoon loan, this
rate generally lasts only for a few years before it rises.
Rates can be fixed or capped. Most revert to the standard
rates. |
| Advantages |
- Usually the lowest available rates
- When payments are made at the introductory rate, the
principal can be reduced quickly
- Some lenders provide an offset account against these
loans
|
| Disadvantages |
- Payments usually increase after the introductory period
|
|