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To attract new borrowers, these loans usually offer a
cheap 'honeymoon' rate of interest for the first year. They offer many features
including:
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A lower interest rate for the first year
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The flexibility to make extra repayments at any time
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Redraw access to additional repayments
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The ability to combine with 100% Offset to reduce interest costs
The ability to package up with other loan products, eg.
Fixed Rate and Line of Credit.
After the first year, the rate reverts to the standard variable rate for the
remainder of your loan term.
You may choose to pay weekly, fortnightly or monthly.
If you take advantage of the introductory 'honeymoon' rate, you may not be able
to repay the loan without penalty for up to 3 years.
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