Honeymoon Rate Home Loans

Honeymoon rate Home loans are also known as introductory rate loans. These types of home loans offer a low interest rate usually for the first six months to one year of the loan. Once the Honeymoon period is finished, the interest rate usually reverts to the standard variable rate.

The advantage of an introductory rate is that it offers borrowers a cheap interest rate in the honeymoon period. The main disadvantage is that most banks charge penalties if you discharge these types of mortgages within the first 0-5 years after settlement, plus your interest rate usually reverts to the standard variable rate after the honeymoon period – we don’t recommend that anyone pays the standard variable rate.

We do not recommend the use of a Honeymoon Loan – these types of loans are usually sold to a borrower when they deal directly with the bank as they are more profitable for the products for the banks to sell. There are much better products available for our customers.

Contact us today to talk about your lending options on +61 2 9981 5385 or submit an Online Enquiry.