Introductory or Honeymoon Rate Home Loans

Introductory or honeymoon rate home loans offer you a discount off the standard variable interest rate at the beginning of your home loan. The discount can be up to one percent off the standard variable rate and is usually for the first 6-12 months of the home loan.

After this period has expired, the interest rate will revert to the mortgage lender’s standard variable interest rate.

Advantages of an introductory home loan

  • Offers a low interest rate usually for the first year of the home loan
  • The interest rate can be fixed or variable or capped
  • During the honeymoon period, the interest rate cannot go higher, but it may go lower if the mortgage lender’s standard variable interest rate falls
  • Repayments made at introductory rates can reduce the principal quickly, as there is less interest charged during the specified period.
  • An offset facility can usually be used in conjunction with an introductory home loan

Disadvantages of an introductory home loan

  • Repayments for your home loan increase after the introductory period, since the interest rate reverts to the standard variable rate
  • If you have fixed the honeymoon rate and the standard variable rate decreases during this period, your honeymoon rate will not decrease
  • May have early repayment fees (or exit fees) if you pay off the home loan sooner
  • Most mortgage lenders will charge you a penalty if you discharge from this home loan within 3 to 4 years
  • Some mortgage lenders may limit the availability of features, such as redraw facilities and extra repayments to offset the lower interest rate

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The only broker in Australia who offers owner builder finance of its kind. Get your home loan now.

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The only broker in Australia who offers owner builder finance of its kind. Get your home loan now.

Featured Video Title

The only broker in Australia who offers owner builder finance of its kind. Get your home loan now.

The only broker in Australia who offers owner builder finance of its kind. Get your home loan now.

Videos for Owner Builders

You should seek pre approval before entering into an owner builder arrangement. The reason is simple, building is a complex excerise requiring good co ordination and technical skills.

Articles for Owner Builders

Lenders are aware of the complexity owner builders face, and the possibility of costs over runs. This comes primarily from in-experience with managing this type of project. Hence most lenders are not generous when it comes to lending at high LVR’s on an owner builder loan.

Frequently asked questions

Why utilize or use an owner-builder expert?

Utilize an owner-builder loan broker that has a particular expertise. We know which moneylenders can help you compare different options between them and normal construction loans that can enable you to make choices.
We can likewise show your application in an ideal way to the loan specialist with the goal that the banks/lenders see your application in the most appealing way that is available. We can likewise manage you all through the entire procedure and make it as smooth as would be prudent.

How does owner-builder loan work?

In case you’re endorsed for an owner-builder loan, the loan specialist will discharge the assets to you as advance installments as opposed to in a singular amount as it would with a standard mortgage/ loan. As you finish each phase of development, a valuer will evaluate the work and after that approve the loan specialist to give next advance installment

How to maximize your chances of being approved?

It is safe to look for pre-approval before entering an owner builder arrangement. Pre-approval will give you a thought of what your maximum loan will be, which can enable you to decide whether or not its the correct choice for you.

How much can I borrow?

If you are an owner builder without any prior experience in building the amount you can borrow will range only from 50% to 70% of the total construction cost. You can get a bigger loan if you are a licensed builder or have the supervision of license builder. Generally, a licensed builder can get approved for up to 80% of the total construction cost.

How to apply for owner builder loans?

We’ll ask for certain documents for owner builder loans to be approved. These are the following: Builder’s permit, budget and its proposed breakdown, project plan, copy of your builder’s insurance, and a clear construction cost estimate.

What is Bad Credit?

When you’ve got a bad credit history you’re typically not qualified for a loan from a bank or traditional credit lender. However, there are loan options available. You’ll simply need to show that you can repay the loan by providing evidence of a regular income, whether that’s through employment or Centrelink. If you’re unemployed and require a loan.

How can I get approved for a loan if I have bad credit?

Fortunately, there are lenders out there who look beyond your credit file. These bad credit loan lenders will take into account income, equity and other things that will enable you to acquire an advance.

How do I get a home loan with bad credit?

One of the fundamental factors that will decide whether you will be accepted will be your income and the nature of your bad credit. Typically, if your bad credit was triggered by a life event then lenders tend to be more understanding. However, if you were aware of your bad credit but continually and knowingly made it worse, then lenders may be more skeptical. Regardless, researching your options, attempting to fix up your credit and choosing an expert loan specialist to run with should enable you to get back on track.

About Us

Our mortgage broking is second to none. Don’t waste your time and money running around from bank to bank, sifting through ambiguous loan offers only to find they don’t work. Take advantage of our expertise and let us find the right loan or finance to suit YOUR needs.