Introductory Rate
An introductory rate is a lower interest rate offered to customers at the beginning of the loan usually for a period six months to a year. An introductory loan is usually about a percentage point below the current interest rate the customer would normally be paying.
After this introductory period the interest rate will revert back to the standard variable rate. The length of time offered for an introductory rate will defer from lender to lender so it is worth shopping around for a deal that suits you and your needs.
An introductory rate is an especially great feature for first home buyers as it allows them to get ahead by making extra repayments or building up their savings.
