A Introductory loan or mortgage (also call Honeymoon loan or mortgage) generally offers a guaranteed low rate for an initial period of time after which most interest rates will revert to the Standard Variable Rate. This calculator helps you find out whether you’re actually saving money with your honeymoon home loan in total interest.
- It does not take into account any possible fees i.e. up-front fees or ongoing fees.
- Interest rate does not change over the loan term.
- Interest is calculated by compounding on the same repayment frequency selected, i.e. weekly, fortnightly, monthly. In practice, interest compounding frequency may not be the same as repayment frequency.
- It is assumed that a year consists 26 fortnights or 52 weeks which is counted as 364 days rather than 365 or 366 days.
- No rounding is done throughout calculation whereas repayments are rounded to at least the nearer cent in practice.