In
competing for market share, many banks
resort to offering very low fixed interest
rates for the first few years of
the term of the loan. The Honeymoon Interest
Rates do not last and will revert to the
standard floating rate (ie BLR + Spread)
after the initial years, which
may be costly in an increasing interest rate
environment.
To
determine the most suitable package, you
should verify:-
1.
the
applicable Honeymoon Interest Rates (which
differ between a completed property and one under construction);
2.
the
period for which the Honeymoon Interest
Rates are applicable;
3.
the
commencement date or the expiry date of the
period for which the Honeymoon Interest Rates are applicable;
