A home loan with a lower interest rate offered in the initial period (usually the first year) of the loan (= the honeymoon period). Usually reverts back to the lender’s standard variable rate loan after the honeymoon period. The honeymoon rate is usually fixed, or at a fixed discount to the standard variable rate for the duration of the honeymoon period.
a discounted rate of interest which is applied to a loan for an introductory (honeymoon) period. This rate is can be fixed, capped or variable and is lower that the market rate. The interest rate normally reverts to the standard variable rate at the end of the period (often 12 months).
Also known as 'Introductory Rate', this is when lenders offer a very cheap interest rate, usually for a one year period.
Some lenders offer a "discount" or introductory rate for a short time period. At the end of the "honeymoon" period, the interest rate normally reverts to the lenderâ€(tm)s variable rate.
A low interest rate offered at the start of a loan. At the end of the specified time period the interest rate converts to a standard variable rate.
Colloquial term applied to Introductory Loans. The rate can be fixed, capped or variable for the first 12 months of the loan. At the end of the term the loan reverts to the standard variable rate.
An initial special low interest rate for a specified period on a loan. It gives you an opportunity to make further repayments during the honeymoon period to reduce the amount owing on your loan. The loan will usually change to a higher variable interest rate at the end of the honeymoon period.