Home Loan Introductory Rate Calculator

 Back to Calculators

What’s a introductory rate home loan?

An introductory home loan, also known as a honeymoon rate, is a type of home loan that offers a discounted interest rate for a short period of time, typically one or two years. The rate is usually substantially lower than the majority of rates on the market, which makes them attractive.

With a lower interest rate, your minimum repayments are likely to be lower for the introductory period, which could help you gradually settle into a new mortgage.

But if you’re savvy, you may opt to make bigger repayments while the interest rate is low to minimize the loan balance that will be subjected to a higher rate at the end of the introductory period.

The interest rates the introductory loan switches to at the end of the introductory period is known as the ‘ongoing rate’ or 'revert rate’. Introductory home loans are usually heavily advertised and promoted by the lender in an effort to attract new customers.

It’s important to note that while these loans can offer initial savings, they may not always be the best option in the long run.

Want to know if an introductory home loan is right for you? Book an appointment with our senior credit representative today.