'Introductory' or 'Honeymoon' Rate Home Loans usually offer a lower rate of interest during the initial stages of your loan, usually the first 6 - 12 Months, after which these loans revert back to the Standard Variable Interest Rate.

These rates can sometimes even be lower than the Reserve Bank rate, meaning the banks are actually losing money during this period!!  But as they say, “there's no such thing as a free lunch”. 

The trade off is that you are usually locked into these loans for anywhere up to about 3 years, meaning that the reduced rate in the early stages of the loan is more than made up for in the later stages, when you are paying the full interest rate.

Usually, a ‘Basic" Home Loan’, or a ‘Standard Variable’ Loan under a Professional Package works out to be much more cost effective.