A Honeymoon rate is an introductory rate on a home loan. Some Lenders will offer an introductory rate which is usually a very competitive low rate. These low rates are for a certain period of time, say 1-3 years, after this period the rates will revert to a higher interest rate.
These honeymoon periods are usually offered to attract borrowers and are often very low. The downside of these extremely low honeymoon rates is that they usually revert back to a much higher standard variable rate once the introductory period expires.
What to be mindful of
Although a low introductory rate might be a great feature, it could detract from the more important things such as the ongoing rate after the honeymoon period, loan fees and most importantly if that loan is right for your long term goals.
There are many short term incentives lenders offer such as cash back deals and bonus frequent flyer points. These incentives may be attractive, and if the home loan is right for you a fantastic bonus. But they should never be the only reason for choosing a home loan.
Why the right loan is important?
When it comes to a home loan it is very important to choose the right one. We all have different goals for the future and having the right home loan will help you reach these goals.
At Mortgage Choice – Pilbara and Kimberley I know the importance of finding the right loan. I will explore your needs and goals and work with you to find the right loan or package to help you now and in the future. Let me look at all the lenders and packages to find you the best deal.
Contact me today to discuss your options and ensure you get the right loan.
Ph: 0447 277 321
Tara Williams - Your local mortgage broker located in Newman servicing Karratha, Port Hedland, South Hedland, Tom Price, Paraburdoo, Broome, Newman, Kununurra, Derby, Dampier, Pannawonica, Roebourne, Wickham, Cable Beach and Wyndam