The Introductory Variable Home Loan offers a discounted interest rate during the first year of your loan, to help you get started with your new home. Introductory loans are also known as honeymoon rate in which the interest rate is usually less to attract borrowers.
Pros:
- Normally the lowest available rates
- Some lenders provide an offset account against these loans
- Unrestricted additional repayments
Cons:
- Payments usually increase after the introductory period