Honeymoon Loan

This type of home loan allows couples or individuals to have lower initial repayments by having a discount on the first year or through a specified period set by both parties. Honeymoon loan can either have a variable or fixed rate, depending on the preference of the borrower. Interest rates are often guaranteed low on the honeymoon period. Once the discount period is over, the loan reverts back to standard variable rate.


  • Usually have the low interest rates during the honeymoon period.


  • Higher variable rate after the discount period.