Solution finder
I'm looking to Buy or build my first home and and have just started researching

Introductory loan

Introductory loans are often used to entice borrowers to take out their mortgage with a particular lender. There are usually some great deals on offer - but make sure you understand the cons, as well as the pros.

What is an introductory loan?

Some lenders will offer home loans with a particularly low interest rate for a short period at the beginning of the loan term - to attract borrowers. Also known as a honeymoon rate, this rate generally lasts only for around 12 months before it rises and reverts to standard variable rates.


What are the pros and cons?


  • Usually the lowest available rates
  • Significant principal reductions can be made during the introductory rate period by paying an increased instalment
  • Some lenders provide an offset account against these loans


  • Payments usually increase after the introductory period

Talk to your local broker today

Things can change quickly in the market.

Subscribe and stay informed with news, rates and industry insights.