Also known as a honeymoon rate loan, the interest rate is usually lower for the initial part of the loan for a specified period. After the initial introductory period, the loan then reverts to the lenders standard variable rate at the time. Rates can be fixed or variable.

- Usually the lowest available rates
- With an introductory rate, payments are lower
- Some lenders provide an offset facility against these loans
- Payments usually increase after the introductory period