Discounted mortgages (low start)

In the competitive environment among home lenders, there are a variety of offers which promise a discount off the prevailing variable interest rate . In other words, the interest rate on offer is set at a set margin below the standard variable rate.

This "discount" may be for a number of years, but in some cases lenders have offered big discounts for short periods of time. e.g. 6% off your home loan rate for six months.

These offers are, in a sense "too good to be true". They invariably involve the borrower agreeing to stay with the lender for a period of time or face "withdrawal penalties".

Other options include mortgages which are : variable rate, fixed rate or capped.

Get professional help from a qualified independent mortgage advisor and see how much you could save on your mortgage payments. There's no obligation, just plain good advice.

See also: Financial Services, Mortgages