Honeymoon Home Loans and Mortgages
Introductory or “honeymoon” rate home loans provide you with a discount off the standard variable interest rate at the beginning of the loan. The discount, of up to 1% per annum, will usually be for the first 6-12 months of your loan term.
After this period has finished, your home loan generally reverts to the lender’s standard variable interest rate, unless you have negotiated something different with your lender. An introductory or honeymoon rate may be fixed, variable or capped.
Particularly suited to first home buyers, the lower repayments in the initial stages of your home loan may enable you to better allocate available funds into other areas such as purchase of furniture.
How low can you go?Banks and lenders are generally able to offer honeymoon rate home loans of up to 1% per annum off the standard variable interest rate through reduced features and flexibility. An introductory or honeymoon rate home loan may come with higher early repayment or exit fees, higher establishment and ongoing fees, and limited extra repayment options in the introductory period than a standard variable rate home loan. There may also be strict rules about how long you must hold the home loan for after the honeymoon period is over – if you pay out or refinance your loan during this additional period you may be liable for extra fees.It’s easy to see the main attraction of these loans. Obviously the lower interest rates and lower repayments at the start of the loan are tempting. It offers borrowers the chance to adapt and adjust to the repayments during the introductory period of home buying. The lower payments allow customers to use the extra funds for other expenses, which can be very useful for people who also need to pay for moving costs and legal fees. Another advantage is that these loans are becoming increasingly competitive which means that borrowers should shop around as there are some great deals now being offered.
How a mortgage broker can helpMost people just simply do not have the time to search through hundreds of home loan options, see the introductory rates and visit different lenders. There are so many choices it can all get quite difficult very quickly. A mortgage broker will be able to do a lot of the legwork for you and then talk you through the home loan products that best suit you. A good mortgage broker will offer advice, assistance, answer your questions quickly, and help negotiate a great deal with your chosen lender.
We only work with your best interests in mind.We pride ourselves on our integrity; we're never influenced by lenders' incentives or kickbacks. We will always recommend the best loan products and mortgage lenders available, so you receive a great rate. That's why our customers keep coming back, time and again.
To get the best advice when considering any type of mortgage, speak to a Local Melbourne Mortgage Broker. Call us on 
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