Browsing New South Wales » 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.
2 Park Street
Citigroup Centre
Sydney, New South Wales 2000
Australia
Global Consumer Group – This group consist of Citibank and Diners Club brands combined offering consumer banking services, including transaction and
140 Sussex Street
Sydney, New South Wales 2000
Australia
ING offering services in the Mortgages, Savings and Commercial Loans segments. It offers saving accounts, term deposits, home loan products and
Level 7, 20 Bridge Street
Exchange Centre
Sydney, New South Wales 2000
Australia
Arab Bank Australia offer transaction accounts, investment accounts, cash management accounts, online savings accounts, personal loans, home loans,
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
492 Olive Street
Albury, New South Wales 2640
Australia
Primarily catering to the customers in Southern New South Wales and North Eastern Victoria, Hume Bank Limited has a strong hold in providing excellent
50 Martin Place
Sydney, New South Wales 2000
Australia
Macquarie Bank Limited is the largest investment bank in Australia, and also one of the top merger and acquisition advisers in the country.
25 Pelican Street
Surry Hills, New South Wales 2010
Australia
Police Bank loans with flexible terms and fast approvals, internet banking, mobile banking, telephone banking, police bank salary packaging/leasing,
201 Elizabeth Street
Level 25
Sydney, New South Wales 2000
Australia
G&C Mutual Bank (SGE Mutual Limited) offers Home Loans, Personal Loans, Credit Cards, Insurance and more peronal finance products.
39-41 York Street
Sydney, New South Wales 2000
Australia
Bank of China (Australia) Limited offers a number of deposit products that includes online saver accounts, demand deposits, cash management, overseas
Cnr Rusden & Dangar Streets
Armidale, New South Wales 2350
Australia
Founded in 1970 and based in Armidale, Australia, The
Shop P003, Podium Level
Bankstown, New South Wales 2200
Australia
Community First Credit Union is the largest community based
217 Clarence Street
Level 7
Sydney, New South Wales 2000
Australia
Collie Miners Credit Union Ltd is a member owned cooperative
38-40 Young Street
Wollongong, New South Wales 2500
Australia
Based in Wollongong, Australia, Community Alliance Credit
10/833 Collins St
ANZ Centre
Melbourne, Victoria 3000
Australia
Australia and New Zealand Banking Group Limited, also known
88 Phillip Street
Sydney, New South Wales 2000
Australia
Established in Australia in 1988, the Royal Bank of Scotland
(6421 Finance Enquiries since 22-02-2016 09:39AM)
85 Castlereagh St
Sydney, New South Wales 2000
Australia
JP Morgan Bank in Australia and New Zealand was launched as
(2615 Finance Enquiries since 22-11-2015 09:29AM)
1 Farrer Pl
19, Governor Phillip Tower
Sydney, New South Wales 2000
Australia
In Australia, Bank of America offers both personal and
(1586 Finance Enquiries since 30-04-2016 11:26AM)
222 High Street
Kew, Victoria 3101
Australia
BankMecu banking products include home loans, car loans,
(9673 Finance Enquiries since 04-05-2015 01:08PM)
130 Stirling Street
Level 7
Perth, Western Australia 6000
Australia
P&N Bank provides financial products and services, including
(3470 Finance Enquiries since 30-05-2015 11:11AM)
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.
