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Introductory or Honeymoon Rate Home Loans
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Will You Benefit From An Introductory Home Loan?
The first few months of repaying your new home can be challenging. After all, it coincides with many purchases, including furnishings, home appliances, and the like. Introductory home loans solve the problem of steep costs during your first year. We provide a discounted interest rate and facilitate your approval process most efficiently.
Interested? Request your free quote
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What is An Introductory Home Loan?
Introductory or honeymoon rate home loans offer a discounted cost for the standard variable rate at the beginning of your home loan journey. The discount would depend on the lender but can be up to 1% off the standard variable rate.
Honeymoon rate home loans are perfect for individuals and families who want a more attainable starting point for the mortgage rate, as these are substantially lower than standard market home loan rates. But do note that once the discount expires, the interest rate will switch to the ongoing revert rate – usually higher than the interest rates on other loan products.
At Intellichoice, we have the financial certifications and AI technology to check if your rate is competitive against the market offerings. We look out for our clients, ensuring that the introductory or honeymoon rate home loans will create the financial benefit it is intended to have.
Perks of Introductory or Honeymoon Rate Home Loans
Here are the main benefits for choosing an introductory home loan:
Low interest rate. The interest rates are at the lowest for the first 6-12 months of the home loan, and only switches to the ‘ongoing rate’ afterwards. Introductory home loans are among the lowest interest rate products on the market.
Introduction to mortgage repayment. First-time home buyers may feel overwhelmed when transitioning from rental to home loan repayments. A honeymoon rate can make the switch less intimidating.
Flexible options. Qualified clients can choose to have a fixed or variable interest rate. Introductory home loans
Reduce principal quickly. Repayments made at honeymoon rates can reduce the principal much sooner, since there’s a lower interest rate at this period.
Cash availability. When new homebuyers choose an introductory home loan, they can cushion the other upfront costs related to home ownership, such as stamp duty, legal fees, and home design, to name a few. Lower home loan repayments in the first year free up cash for other matters.
Our financial experts at Intellichoice understand that beginner homeowners want the smartest option to maximize their first year of mortgage repayment. Our team can calculate your best rates while being mindful of the higher ongoing rate after the honeymoon period has concluded.
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What to be Mindful About Introductory Home Loans?
There are several advantages to introductory home loans, but you should consider a few aspects before choosing this product.
High ongoing rate. Introductory home loans can revert to substantially higher rates when the honeymoon period ends. Overall it may cost far more overall than a standard home loan.
Restrictions. Introductory or honeymoon rate home loans offer lower rates, which means there could be restrictions on extra repayments. If you pay off the home loan sooner, there could also be early repayment fees (exit fees).
Switch fees. Once the intro period ends, you could discuss switching to a different product with the same lender, to have a lower rate than the revert ongoing rate. But switch fees may apply in these instances.
Curious about your honeymoon rate mortgage options?
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Why Partner with Intellichoice?
Intellichoice finds ways to make your home acquisition journey successful. Introductory or honeymoon rate home loans can make your first year or mortgage payments less burdensome and give you more legroom for your cash as you start to beautify your property. Let our certified experts plan for the best possible discounted rate for you.
Get stress-free introductory home loan options with us