Lower repayments upfront sound great. But it's worth understanding what happens after the intro period ends.
A honeymoon rate — also called an introductory rate — is a lower interest rate for the first 6–12 months of your loan. Your repayments are smaller upfront, which can be genuinely useful if you're renovating, furnishing a new place, or managing the financial transition from renting.
After the intro period, the rate reverts to the lender's standard variable rate. Here's the thing: that revert rate is often higher than what you'd get on a competitive standard variable loan from day one. So the question is whether the savings in the first year outweigh the higher cost over the remaining 29.
A broker runs both scenarios side by side so you're making the decision with full information — not just the headline intro rate.
For the first 6–12 months, you pay a lower interest rate than the standard rate. Repayments are smaller during this window — useful when you're managing moving costs, renovations, or the adjustment from paying rent.
Once the intro period ends, your loan switches to the lender's standard variable rate — which is often higher than competitive rates available in the market. This is the number that matters most, and it's the one you need to check before you commit.
A honeymoon rate can be a smart move if you genuinely need lower repayments in the short term and plan to refinance or review once the intro period ends. It's less useful if you set and forget — the revert rate can end up costing you more over the life of the loan.
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Your loan switches to the lender's standard variable rate — and your repayments go up accordingly. The size of that jump depends on the lender. Some revert rates are reasonable; others are significantly higher than what's available on competitive variable products in the market. This is the number worth checking before you sign up, not after.
Not always. A lower rate for 12 months can save you a few thousand dollars upfront — but if the revert rate is half a percent higher than the market average, you'll pay that extra cost for the remaining 29 years. The maths doesn't always favour the honeymoon product. A broker runs both scenarios side by side so you can see the real comparison over the full loan term.
Yes. Refinancing once the intro period ends is a common strategy — you get the benefit of lower repayments upfront, then move to a more competitive product when the honeymoon rate expires. Some loans have exit fees or break costs, so it's worth checking the fine print before you commit. A broker can factor this into the comparison from the start.
Three things: the revert rate (what you'll pay after the intro period), any restrictions on features like offset accounts or extra repayments during the intro period, and any exit fees if you refinance early. The headline intro rate is the marketing — the revert rate and the fine print are what actually matter.
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