The main feature of the BankVic Honeymoon Home Loan is the very low variable interest rate during a one or two- year introductory period, however this rate reverts to BankVic’s standard variable rate which is moderately high range, so be sure you take this into account.
You can pay off your Honeymoon Home Loan early without being charged any penalty fees for making additional repayments towards your loan amount.
And, redrawing these funds is free through the redraw facility, but you do have to be redrawing a minimum amount in order to use this feature.
This BankVic home loan has a loan portability option which allows you to take this loan with you in the event you decide to purchase a new home and move during your loan term. It also lets you choose between monthly, fortnightly or weekly repayments so you can structure the loan around your incomings and outgoings.
The Honeymoon Home Loan is an attractive offer for first home buyers since the total cost for the first few years is comparatively low. You also don’t need to make a large deposit on your property since this home loan allows you to borrow up to 95 per cent of your home’s value.
BankVic will also consider you for pre-approval which shows that you are a serious buyer since you have already met the pre-approval conditions by your lender.
This loan is targeted at first home buyers and refinancers since the introductory period does have a very low interest rate and no establishment or ongoing fees.
This loan is not offered to investors.
The BankVic Honeymoon Home Loan can seem like a great way to start out homeownership but be aware that many of the perks offered in this loan are only for a limited time – particularly the low interest rate.
After the honeymoon period your rate will revert to a moderately high variable interest rate which means you’ll have to start making higher repayments and ultimately pay more over the life of your loan.
This home loan does not an offset account, but it does allow you to make additional repayments so you can pay off your loan faster. Other tools such as a redraw facility, loan portability and pre-approval can be beneficial but only if they are what you are looking for in a home loan. It all depends on your specific situation and comes down to your own checklist in order to determine if the Honeymoon Home Loan is the most suitable option for you.
The BankVic Honeymoon Home Loan is offered at introductory periods from one to two years. Find out more information about these options below.