Banks

Ever joined a gym? Sometimes they'll motivate you to join with a special deal on membership fees. You feel great at first, but before you know it you're ready for a change. Unfortunately, you've already signed up long term and stuck with ongoing membership payments. This is how committing to an introductory rate home loan can feel.

An introductory rate home loan aims to entice new homebuyers into the mortgage market with an alluring discount on the interest rate for the first six months to a year of the loan term. Also known as a honeymoon rate, the interest rate on your loan will revert to a variable rate after the introductory period.