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.
455 George Street
Queen Victoria Building
Sydney, New South Wales 2000
Australia
Citibank is the largest issuer of credit cards in the world, but offers a number of other services to their customers, including saving accounts, term
Level 32, 580 George Street
Sydney, New South Wales 2000
Australia
The Hongkong and Shanghai Banking Corporation Limited is a Hong Kong based Company established in 1865. It is the founding member of the HSBC Group.
22 Old Shoal Point Rd
Bucasia, Queensland 4750
Australia
Barry Lynam Home Loans and Financial Services offers a wide range of residential home loans and personal loans.
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 Australia. The company is primarily based in Sydney, NSW. Since its inception in 1998, the
25 Ferguson Street
Unit 6 Level 1
Albany Creek, Queensland 4035
Australia
North Brisbane Home Loans is an award winning mortgage brokering company based in Brisbane. With access to over 20 lenders the team at North Brisbane
42 Barracks Flat Drive
Queanbeyan, New South Wales 2620
Australia
Provincial Home Loans is a Canberra – Queanbeyan based home loans and mortgage brokering company. For the past twenty years, the company has
94 Belford Street
BROADMEADOW, New South Wales 2292
Australia
SJ Financial Services aims at providing loans for almost every need a person may have. Whether you want to own a car, boat or your own home, SJ
6 Tilburn Rd
Deer Park, Victoria 3023
Australia
A public company founded in 1963, Circle Credit Co-operative Limited is a state credit union, providing banking products and services to its
269 Clartinda Street
Parkes, New South Wales 2870
Australia
Central West Credit Union Limited offers Savings account, various kinds of lending options such as car loans, home loans and personal loans, fixed
28-32 The Kingsway
Suite 109, 1st Floor
Cronulla, New South Wales 2230
Australia
Categorized under State Credit Unions, Cape Credit Union Limited is a public company founded in 1969 in Kurnell. The organization generates about $3.
400 King William Street
Adelaide, South Australia 5000
Australia
Credit Union SA - Find loans, credit cards, insurance
Level 2, 5 Davidson Terrace
Joondalup, Western Australia 6027
Australia
McKinley Plowman is a leading firm of accountants in Perth.
201 Sussex Street.
Tower 1
Sydney, New South Wales 2000
Australia
Commonwealth Bank of Australia is one of the largest banks
44 Waymouth Street
Adelaide, South Australia 5000
Australia
A completely customers owned bank, Beyond Bank Australia, is
Level 5, 31 Queen St
Melbourne, Victoria 3000
Australia
Defence Bank Limited started operations in 1975 as Defence
88 Phillip Street
Sydney, New South Wales 2000
Australia
Established in Australia in 1988, the Royal Bank of Scotland
(5672 Finance Enquiries since 22-02-2016 10:39AM)
Shop 44 Sunshine Plaza
324-328 Hampshire Road
Sunshine, Victoria 3020
Australia
Let us take the hassle out of your new home purchase,
(626 Finance Enquiries since 26-07-2017 04:38PM)
345 George St
Sydney, New South Wales 2000
Australia
Standard Chartered Bank is a British multinational banking
(3571 Finance Enquiries since 10-04-2016 11:54AM)
117 Camberwell Road
Hawthorn East, Victoria 3123
Australia
Victoria Teachers Mutual Bank offer wide range of banking
(1923 Finance Enquiries since 02-06-2015 01:23PM)
231 North Quay
Level 1
Brisbane, Queensland 4000
Australia
Queensland Police Credit Union Limited - Offers loans,
(1801 Finance Enquiries since 03-11-2016 06:59AM)
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.
