Honeymoon Rates
The “honeymoon”
home loan will most likely offer you the lowest rate on the market. This tempting low rate can save you considerable amounts in the beginning, but watch for the rate that the loan reverts to once the introductory period is over.
Loan TermsThe “honeymoon” period – usually between six months to one year – sees you paying a very low
home loan interest rate, sometimes as much as 1% lower than other home loans. The low rates are usually only for this short period of time. After that the loan with revert to a standard variable rate and this could be considerably higher.
Repayment optionsUsually you will repay the loan monthly, or perhaps fortnightly if you prefer. Because the loan is an introductory loan with a very low rate, there may be restrictions on your repayments, so you will need to check with your own lender.
Home Loan FeaturesIntroductory home loans do not usually come with many added features. This is how the rate is kept so low. Some lenders may offer certain benefits wither their introductory loans, but usually the loan will be fairly basic. But it may be worth going without these features if you really want the low rate.
Interest Rates The interest rate with this loan type will be around 1% lower than other loan types on offer. This can save you considerable amounts during this time. If you are a first home owner adjusting to the commitment of a mortgage or simply on a tight budget this loan could be good for you. Just watch out for the rate which you will pay once the introductory period ends as it can rise considerably.
Don’t get caught out! Find out if a honeymoon loan is right for you by talking to your local mortgage broker on 
.