Honeymoon Loans

A honeymoon loan (or introductory loan) is a loan with lower interest rates or lower repayments for the first six to twelve months. After the ‘honeymoon’ term, the loan becomes a standard variable rate loan and the repayments will change to include the current standard variable interest rate.

The Pro's

What are the benefits of a honeymoon loan?

The main benefit of a honeymoon loan is that it can help you save money in the short-term. This is because honeymoon loans usually have lower interest rates or lower repayments for the first six to twelve months. This can help you pay off your loan faster or reduce your overall interest payments.

Another benefit of a honeymoon loan is that it can protect you from rising interest rates. This is because honeymoon periods are usually fixed, meaning your repayments won’t go up even if interest rates do. This can give you peace of mind and help you budget better for the future.

The Con's

What are the disadvantages of a honeymoon loan?

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What to look for

How do I compare honeymoon loans?

When comparing honeymoon loans, there are a few things you should look at:

-The size of the honeymoon period: This is how long the lower interest rates or repayments will last. Choose a loan with a honeymoon period that suits your needs.

-The interest rate: This is the rate you’ll pay for the honeymoon period. Compare loans to find the one with the lowest interest rate.

-The fees: Some honeymoon loans come with fees, such as break costs fees if you exit the loan early. Make sure you compare the total cost of different loans before applying.

-Your eligibility: Not all lenders offer honeymoon loans, and some have strict eligibility criteria. Make sure you check this before applying for a loan.

If you’re thinking about buying your first home, our team of experienced mortgage brokers can help. We’ll work with you to find a loan that meets your needs and budget.

Contact us today to get started.