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Capped Rate Mortgages
Search, compare and apply for the best value home loans on the market including capped rate mortgages . With a variable interest rate slightly higher than basic variable home loans, capped rate mortgages protect borrowers from rising interest rates for a period of time.
Capped rate mortgages work by not allowing the variable interest rate to rise above the capped rate. For example, if the capped rate is 8 percent p.a. and the capped period is three years, if the current variable interest rate on this particular home loan was 7 percent p.a., the rate is guaranteed to stay below 8 percent for the first three years of the loan, even if the lender's variable interest rate reaches 8.5 percent by the borrower's second year. Capped rate mortgages can be better value if fixed rate loans are advertised at a much higher rate. If you are thinking of fixing your home loan, consider capped rate mortgages as an option and compare the best value deals at RateCity.
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