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Compare Honeymoon Rate Home Loans

Introductory home loans have a discounted rate at the start of the mortgage. Sometimes called honeymoon loans, they can be a good deal at first but your rate will rise later.

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Name Finder Score Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Regional Australia Bank logo
Principal & Interest5% min. depositOwner-occupier
Regional Australia Bank logo
Principal & Interest5% min. depositOwner-occupier
Product NameRegional Australia Bank Basic Home Loan
Interest Rate Typevariable rate
Repayment Type Principal & Interest
Interest Rate p.a.6.14%
Comp. Rate p.a.6.57%
Minimum Loan Amount$100,000
Maximum Loan Amount N/A
Maximum Loan Term30 years
Maximum LVR 95%
Loan Redraw FacilityYes
Offset AccountNo
Split Loan FacilityNo
Fixed Interest OptionNo
Loan PortableNo
Extra Repayments Yes
Finder score
Interest Rate
6.14%
Comparison Rate
6.57%
Fees
Application: $250
Ongoing: $0 p.a.
Monthly Payment
$914
BankWAW logo
Principal & Interest10% min. depositOwner-occupierOffset account
BankWAW logo
Principal & Interest10% min. depositOwner-occupierOffset account
Product NameBankWAW Flexible Choice 24 Month Variable Rate Intro
Interest Rate Typevariable rate
Repayment Type Principal & Interest
Interest Rate p.a.6.39%
Comp. Rate p.a.7.98%
Minimum Loan Amount$0
Maximum Loan Amount N/A
Maximum Loan Term
Maximum LVR 90%
Loan Redraw FacilityYes
Offset AccountYes
Split Loan FacilityNo
Fixed Interest OptionNo
Loan PortableNo
Extra Repayments Yes
Finder score
Interest Rate
6.39%
Comparison Rate
7.98%
Fees
Application: $600
Ongoing: $0 p.a.
Monthly Payment
$939
South West Slopes Bank logo
Principal & InterestInterest only20% min. depositOwner-occupierOffset account
South West Slopes Bank logo
Principal & InterestInterest only20% min. depositOwner-occupierOffset account
Product NameSouth West Slopes Bank Intro Discounted Standard Variable
Interest Rate Typevariable rate
Repayment Type Principal & Interest Interest Only
Interest Rate p.a.6.20%
Comp. Rate p.a.6.56%
Minimum Loan Amount$0
Maximum Loan Amount N/A
Maximum Loan Term30 years
Maximum LVR 80%
Loan Redraw FacilityYes
Offset AccountYes
Split Loan FacilityNo
Fixed Interest OptionNo
Loan PortableNo
Extra Repayments Yes
Finder score
Interest Rate
6.20%
Comparison Rate
6.56%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$920
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What is Finder Score?

The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.

Read the full Finder Score breakdown

If you're looking for a honeymoon home loan with an upfront discount you need to make sure that the loan is a good product for you (regardless of the discount) and check that it doesn't have big discharge or switching fees. This could make refinancing more expensive once the honeymoon rate ends.

What is an introductory home loan?

Introductory rate home loans are designed with first home buyers in mind. They offer a low rate of interest for a special promotional period (normally about a year), which helps keep your payments down. It’s not unusual for this low rate to be a whole percentage point below the standard rate.

Once the honeymoon rate period is over, the interest rate reverts to the product’s standard variable rate. If this revert rate is too high, you can consider refinancing to a cheaper home loan. This can take a little time and money, but will save you money in the long run.

Your lender may have another, similar loan product you could switch to instead of refinancing with a completely new lender.

Honeymoon home loan calculator

*Whilst every effort has been made to ensure the accuracy of this calculator, the results should only be used as an indication. They are neither a recommendation nor an eligibility test for any product and should not be construed as financial advice, investment advice or any other sort of advice.

Are honeymoon rates the best choice for you?

The most attractive feature of a honeymoon loan is of course its low introductory rate, but before you choose your new home loan, consider the different ways you can save interest in the first years of your mortgage.

  • Fees. Check the loan fees carefully. Most honeymoon rates are on variable home loan products. This means legally the lender cannot charge you a breaking fee. But if it's a fixed rate introductory discount then exiting the loan during this period can be costly because of fixed loan break costs.
  • Loan purpose. If you're an investor you need an investment loan. If you're a home owner then it's an owner occupier loan. Most honeymoon home loans are for owner occupiers only.
  • Features. Some loans allow you to make extra repayments and spend those extra repayments later via redraw if you need them. This can help you repay the loan faster and have extra cash when you need. An offset account does this but is even more flexible because the money is easier to access. Some introductory loans allow extra repayments but might be harder to find one with an offset account.

If you would like to see what effect additional repayments have on your mortgage, check our extra repayment calculator.

What should you do when the honeymoon rate ends?

Make note of your home loan's honeymoon period. It's usually only for one or two years. Your lender may notify you when the period ends, but they might not. Either way, check your home loan statement or log onto your lender's website and check the new rate your loan is now on. It's likely higher than the honeymoon rate.

Then you should do the following:

  • Compare rates. Check the latest home loan rates and see if your new rate is competitive or not. If not, you should consider switching (also called refinancing).
  • Find a new loan. Once you've compared rates find a new loan that suits your needs and has a more competitive rate.
  • Check switching costs. Once the honeymoon rate is over you will most likely be on a variable rate (even if it was fixed before). The loan may have have a discharge or switching fee of a few hundred dollars. The new loan may have some upfront fees too, such as an application fee.
  • Apply for the new loan. Organise your home loan application and hopefully you're successful. Your new lender will handle the change over and you just need to complete a discharge form with your old lender. And with that the honeymoon is over.
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Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise
Richard has written 549 Finder guides across topics including:
  • Home loans
  • Property
  • Personal finance
  • Money-saving tips

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