Honeymoon Introductory Loan Calculator

A honeymoon interest rate, also simply known as an introductory interest rate, is a temporarily lower interest rate offered at the beginning of a home loan term for a set period of time. At the end of this introductory period, the interest rate switches to an ongoing revert rate , which is usually much higher and in line with the lender’s other mortgage products.

Honeymoon interest rates can be useful in the short-term, as they can offer some serious introductory savings, but they can hurt you in the long-term as the revert rate might be higher than the interest rates on other products. Plus, lenders sometimes charge higher switching fees for such loans to discourage people from changing once the honeymoon period is over.

To work out the repayments and total cost of a home loan with a honeymoon (introductory) interest rate, use our introductory interest rate calculator.

Savings.com.au’s introductory interest rate calculator can be used to let you work out the difference in repayments between the introductory period and after the introductory period ends.

All you need to do is enter:

• The loan size and repayment frequency
• The loan term
• The honeymoon interest rate
• The revert rate
• The honeymoon period (usually between six months and two years)

This should give you an idea of whether you’ll be able to afford the mortgage’s repayments once the revert rate kicks in.