RateCity.com.au
Advertisement

What is a balloon payment?


Nick Bendel

Nick Bendel

1 min read

Some lenders will offer borrowers reduced monthly repayments in return for a one-off lump sum – or balloon payment – that the borrower has to pay at the end of the loan. Generally, the total repayments on a loan with a balloon structure will be higher than a loan without.


Compare your product with the big 4 banks, or add more products to compare