Easy Street’s Honeymoon Home Loan offers a low interest rate for the first twelve months of the loan. Moreover, there are no ongoing fees on over the life of this loan, helping home buyers to save money.
In addition, other features will allow you to keep interest costs down. You get a 100 per cent offset account with this loan, whereby your savings reduce your loan principal and help cut interest costs on the loan. You can make unlimited extra repayments, and redraw excess repayments, without fees or a minimum redraw amount.
Repayments can be made weekly, fortnightly or monthly and you can take the loan up to 30 years.
You can borrow up to 95 per cent of the property’s value with lenders mortgage insurance, or avoid paying for this if you have a 20 per cent deposit.
But after the discounted rate period, you need to be aware the loan will revert to Easy Street’s standard variable interest rate, so make sure you’re comfortable with that rate before signing up.
Easy Street’s Honeymoon Home Loan is suitable for first home buyers, owner occupiers or investors who want to keep their home loan costs down. Many new borrowers can utilise this reduced rate to make more repayments and lessen the loan term and interest load. This loan may also suit refinancers looking for a competitive interest rate for short period.
An introductory rate can seem ideal in the beginning but be careful, as the interest rate will revert to the standard variable rate. Having said that, home buyers like honeymoon loans because the interest rate is low and interest will easily be the biggest cost on your mortgage, so the introductory 12-month discount may make good financial sense. But care needs to be taken.
Make sure the loan suits your needs and weights the pros against the cons after checking the standard variable rate and variable rate home loans offered by other lenders. Any interest, fees and charges you may save on can be quickly forgotten with the mandatory move to the standard rate. Arm yourself with knowledge so there are no little surprises down the track.
Experience an introductory rate to have the opportunity to save on interest and loan term with Easy Street Financial Services Honeymoon Home Loan.