The Introductory Rate Loan offers a discount off the standard variable interest rate for the first year. After this time, however, your rate will revert to the bank’s standard variable which is moderately high.
Some of the key features of this loan include a 100 per cent offset account and the ability to make additional repayments, both of which are fee-free. The loan also includes a redraw facility which is also fee-free if you access it online (minimum amount per redraw is $100).
The Hume Bank Introductory Rate Loan also lets you make interest-only repayments for a certain period of time, if you need a break from paying principal and interest.
Hume Bank’s Introductory Rate Loan can also be used as a construction loan and a top up facility is available, although additional fees apply for this.
Hume Bank’s Introductory Rate Loan is designed for people looking to ease their way into the property market however borrowers need to be aware that the revert rate after the first year is high so you will need to be sure you can afford to make higher repayments once the introductory deal has ended.
Hume Bank’s Introductory Rate Loan certainly offers a great interest rate for your first year, however it is wise to have a plan for meeting your repayments after this period has expired as the bank’s standard variable rate is a lot higher than a lot of other offerings on the market.
The flexible structure of this loan, which includes an offset account and redraw facility, can help you get ahead on the loan but if you aren’t going to take advantage of these features then you may find you will be better off on a more basic home loan with a lower ongoing interest rate.
See more about the available options for the Introductory Rate Loan from Hume Bank at the links provided.