A honeymoon loan is a home loan or mortgage where you get a discounted rate for an initial period or 'honeymoon period'. During the set period the interest rate is lower than the standard interest rate for the loan.
Lower interest rates at the beginning of the loan can save you on total interest payable. The honeymoon loan calculator allows you to compare the difference that a honeymoon rate provides over the standard variable rate for the initial period.
The primary benefit of a honeymoon loan is that it reduces your repayments when the honeymoon rate is applied.
Before acquiring a loan it is vital that you compare loans using a calculator and factor in any loan conditions before you apply.
This article is general in nature and does not constitute personal advice. Consider your personal circumstances and read terms and conditions and Target Market Determination, before making a decision. Always speak with your accountant and/or financial planner for personal advice which is tailored to your circumstances.