Discounted (Honeymoon) Variable Loan

These products are generally standard variable home loans where new borrowers receive a discount in the interest rate for the first 6 to 12 months of the loan term. After that, the interest rate reverts to the standard variable rate of the day.

Discounted variable home loans usually have the same features as standard variable facilities. However, in offering a discounted period the lender is expecting a degree of loyalty from the borrower and will commonly charge an early repayment fee if the loan is repaid in full within the first few years.