Choosing the right home loan is not only about getting the lowest the rate of interest but also getting the best loan features. Once you know how much you can borrow, you may select the home loan that is right for youl, which could give you a competitive interest rate as well as the right loan features. When you look for mortgages you not only look at the interest rate, but also at monthly repayments and loan period. For consultation, consider calling our experts today.
Which is better - Fixed interest rate or Variable interest rate?
Standard Variable Loan Features
Extra payments can be redrawn.
If you are in position to pay more than the minimum repayments, you can repay the loan faster. This puts you in a better position as interest rates fluctuate.
Repayments and Interest rates can change at any time.
Availability of an offset account is likely, Which will reduce the interest you pay.
Variable Interest Rate Loans can be used in the following situations:
'Off the Plan’ purchases
Building construction, personal investment
Fixed Rate loans give you certainty of the amount you need to pay regularly, and the duration of the loan amount.
Features of Fixed Rate loans
Increase in Interest rates don’t affect you for the fixed term.
Budgets and Finances can be planned as the repayment amount is set.
For a period of 1 to 5 years, interest rates are fixed.
Offset account of partial interest may be available, depending on the lender.
Depending on the lender, extra repayments can be made but the minimum repayment amount would be fixed each year by the lender.