Capped Home Loans
Capped home loans have a security feature similar to fixed home loans. Capped home loans however are not fixed at the one interest rate for a period of time, they are variable which means the rate can reduce and will only increase up to a specified rate according to the individual lender. The capped rate period is for a limited length of time and can vary according to each loan's terms. For example, a capped period can be for the first year of the loan, for the first two years, three years or five years, depending upon the loan terms. Capped home loans can be beneficial when interest rates are expected to increase but are generally at a higher rate than standard variable interest rates. Compare, search and apply for the best value home loans at RateCity.