A home loan with a lower interest rate offered in the initial period (usually the first year) of the loan (= the honeymoon period). Usually reverts back to the lenderâ€™s standard variable rate loan after the honeymoon period. The honeymoon rate is usually fixed, or at a fixed discount to the standard variable rate for the duration of the honeymoon period.
a discounted rate of interest which is applied to a loan for an introductory (honeymoon) period. This rate is can be fixed, capped or variable and is lower that the market rate. The interest rate normally reverts to the standard variable rate at the end of the period (often 12 months).
Also known as 'Introductory Rate', this is when lenders offer a very cheap interest rate, usually for a one year period.