Aussie’s 1 Year Discounted Loan not only offers discounted interest rates – it also offers a range of features suited to a variety of situations. For example, the loan includes the ability to make unlimited extra repayments, a redraw facility with the option to have a deposit card linked to the redraw account, the choice between fortnightly and monthly repayments and the option to pay interest-only.
Further, you can switch to a fixed rate or opt for split loan. This loan differs from Aussie’s Basic Variable Rate Home Loan because the initial interest rate is discounted for one year, giving you a chance to pay more of the principal at the start of your loan period. Be aware however, that the rate then reverts to a higher amount after the first year.
This loan is good for owner-occupiers and investors looking to buy residential properties, however investors will pay a higher interest rate. Its low fees and cheaper first-year rate may be beneficial for first home buyers or people expecting to grow their income later on in the life of the loan.
The key advantage of this product is that it may make home ownership more accessible for some people in the short term with an initial interest rate that is below market average. Under this loan you aren’t going to pay many upfront or ongoing fees so there is a potential cost savings here as well.
However, buyers need to have budgeted for higher repayments after the introductory period. As with any introductory deal, it’s worth sitting down and working out whether the special one year rate is worth it in the long run.
Click the provided link for more about the Aussie 1 Year Discounted Loan.