Watch out for Honeymoon periods

DON’T let introduction rates dictate choice.

Low introductory rates are a feature designed to draw you in. Why wouldn’t a loan up to two per cent below the standard going rate be appealing? Honeymoon rates last for a finite period, normally up to a year before changing to the lenders standard rate. Don’t let that initial low rate dictate your choice of loan, be sure that it contains features suitable to you and a standard rate that is acceptable for the long term after the honeymoon is over. Examine the comparison rate lenders are obliged to include with each home loan product for a better evaluation of the loan.

By Robert Projeski, Managing director
AMO (Australian Mortgage Options)

Debt consolidation loans Australia