A low initial interest rate on an adjustable-rate mortgage to entice borrowers, that is later eliminated and replaced by a market-level rate. Bloomberg Financial Dictionary
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teaser rate UK US noun [C] MARKETING, FINANCE
► a low interest rate at the start of a loan designed to encourage people to take out the loan. The rate usually increases later: »
The loans are initially offered at a teaser rate that is set to rise the following year.
Financial and business terms. 2012.