Introductory Home Loans

An Introductory or Honeymoon rate home loan offers a reduced rate of interest at the beginning of the home loan. This honeymoon period typically lasts for 12 months, but can range from 6 months, up to 2 years depending on the lender. After the introductory period is over, the interest rates will revert to the standard rates.

Introductory Home Loans

Introductory Home Loan Advantages

  • Introductory home loans typically offer the lowest rates of interest.
  • The principal (borrowed amount) can be reduced quickly while under the Honeymoon rate of interest.
  • Some lenders will even enable Offset accounts on Intro home loans.

Introductory Home Loan Disadvantages

  • After the introductory period is over, the interest rate will increase to the standard rate (and possibly even higher than the standard rate) potentially putting you into a strained financial position.
  • May have higher establishment and ongoing fees and limited extra repayment options during the introductory period.

Most Suitable For

  • First home buyers or borrowers who are initially on a tight budget.

Want to talk more about your home loan options?

If yes, then please get in touch with me today and I'll be happy to help. All my home loan and mortgage services (from the initial meeting, right through to home loan settlement) are completely free to you.

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