Browsing Home Loans » Variable Rate Home Loans
Related Categories: Home Loans, Introductory Rate Home Loans, Construction Home Loans, Fixed Rate Home Loans, Bridging Loans, Low Doc Home Loans, Line of Credit
When it comes to getting the right mortgage for your home, there are a number of choices that are available depending on a number of factors. Two of the more popular types of mortgages are fixed rate and variable rate. Each type has its advantages, but what exactly are variable rate home loans and how do they work in Australia?
A variable rate means that the interest rates for your loan will change depending on the national lending rate and they offer more flexibility than their fixed rate counterparts. For many Australians, there are certain advantages that going with a variable rate loan offers, particularly when it comes to saving money assuming that the lending rates remain low.
While a fixed rate loan is set for roughly three to five years, a variable rate mortgage means that the interest rates may change after the loan has been signed. The Australian industry cash rate is what sets the interest level for the loan and many take advantage of the rates when the interest levels are very low.
However, there are some considerations that need to be made before jumping on a low interest variable rate loan.
This particular type of loan is certainly a very popular choice, especially when the lending rates are so low. This is particularly true when it comes to comparing the terms offered by different lenders who will often sweeten the loan with features such as the option to make extra repayments on your own schedule and redraw facilities that add to the flexibility as well.
However, the danger is that your repayment rate is subject to the fluctuations of the market which means that it makes it more difficult to budget. While the advantage is that if rates fall you will pay less, the problem becomes what happens when the rates rise. Even a small shift in the interest rate may mean hundreds, if not thousands of dollars over the course of the loan.
This is why many lending experts recommend that you allow for a 2% shift in the interest rate when taking out a variable rate home loan. While 2% may be a little extreme given the past several years of stability, predicting economic forces several years out can be difficult as there are many unforeseen factors. However, do have the option to split your loan over variable and fixed rates to provide more stability or simply go with a fixed rate loan for now and secure the next few years.
The more you learn about variable rate home loans, the better off you will be when it comes to getting a long-term loan to purchase property. For many Australians, the variable rate loan offers more advantages in terms of flexibility and the possibility of actually paying less on your monthly rate. However, that will have to be weighed by the possibilities of having the interest rates rise over the time of your loan as well.
Suite 13/357 Gympie Road
Strathpine, Queensland 4500
Australia
Our job is to help you find the right loan that is tailored to your specific needs. Looking after your best interests is our purpose.
We will support
Shop 44 Sunshine Plaza
324-328 Hampshire Road
Sunshine, Victoria 3020
Australia
Let us take the hassle out of your new home purchase, Investment purchase, refinance or let us do a health check on your existing mortgage. We cover
10/833 Collins St
ANZ Centre
Melbourne, Victoria 3000
Australia
Australia and New Zealand Banking Group Limited, also known as ANZ is among the largest international banks in terms of market capitalization in
16–20 Barolin St
Bundaberg, Queensland 4670
Australia
Auswide Bank Ltd, formerly known as Wide Bay Australia has been in the banking and finance sector for over 50 years and primarily deals in home loans
259 Queen St
Brisbane, Queensland 4000
Australia
Bank of Queensland Limited is one of the oldest financial institutions of Australia and has its headquarters in Brisbane, Queensland.
The Bendigo Centre
Bendigo, Victoria 3550
Australia
Bendigo and Adelaide Bank Limited came into existence in 2007, when the merger between the Bendigo Bank and Adelaide Bank took place.
2 Chifley Square
The Chifley Tower
Sydney, New South Wales 2000
Australia
Known widely as the specialist banking service provider, BOQ Specialist Bank Limited has been in the business of providing professional, dedicated and
201 Sussex Street.
Tower 1
Sydney, New South Wales 2000
Australia
Commonwealth Bank of Australia is one of the largest banks in Australia, forming one of the top four banks of the country - CBA
44 Waymouth Street
Adelaide, South Australia 5000
Australia
A completely customers owned bank, Beyond Bank Australia, is one of the fastest growing banks and also one of the biggest customer funded and owned
Level 5, 31 Queen St
Melbourne, Victoria 3000
Australia
Defence Bank Limited started operations in 1975 as Defence Force Credit Union Limited and continued under that banned until 2012, when its name was
57 Honeyeater Crescent
Moggill, QLD, Queensland 4070
Australia
Local Accountants that look after clients with affordable,
Suite 12.01, Level 12
222 Pitt Street
Sydney, New South Wales 2000
Australia
Leading Accountants & Business Advisers in Sydney, Australia
150 Collins St
Melbourne, Victoria 3000
Australia
Westpac transaction accounts, debit, credit and travel cards
22 Old Shoal Point Rd
Bucasia, Queensland 4750
Australia
Barry Lynam Home Loans and Financial Services offers a wide
1 Hobsons Gate
Suite 10, Level 1
Currambine, Western Australia 6028
Australia
Amani Finance is one of the leading mortgage brokers in
100 Pacific Highway
Level 10
North Sydney, New South Wales 2060
Australia
Mortgage Choice Limited offers home loans, business loans,
(568 Finance Enquiries since 14-11-2016 07:49PM)
5 Lime Street
King Street Wharf Level 3, Suite 323
Sydney, New South Wales 2000
Australia
AMO is one of the leading loans and mortgage brokers in
(1686 Finance Enquiries since 08-12-2015 10:50AM)
42 Barracks Flat Drive
Queanbeyan, New South Wales 2620
Australia
Provincial Home Loans is a Canberra – Queanbeyan based
(1020 Finance Enquiries since 11-01-2016 09:58AM)
3/71-73 Wharf Street
Tweed Heads, New South Wales 2485
Australia
Aussie offers home loans, personal loans, business loans,
(424 Finance Enquiries since 19-11-2016 08:45PM)
253 Princes Highway
Level 1
Corrimal, New South Wales 2518
Australia
Illawarra Mortgage Brokers offer various types of home loans
(292 Finance Enquiries since 23-11-2016 07:52AM)
Preparing for retirement is a challenging thing for most people. It’s so easy to get caught up in the present that you forget about your financial well-being in the future. The unfortunate thing is that most people do not spend enough time planning for retirement.
The forex market is the most active and liquid exchange platform in the world. Similar to the ASX, the forex market allows investors to trade security instruments; specifically, forex traders deal in fiat currency. this paper discusses profiting from currency exchange fluctuations in the Forex
Looking to cut inefficiencies in your business? Of course you are, or at least you should be. Cloud computing allows you to run your small business more efficiently while saving you time and money, read on to see how Cloud Computing can help your business boost it's output.
