Home Loan Rates
In April 2009 the Reserve Bank of Australia dropped the official cash rate to a 49-year-low of 3%.
As a result, home loan interest rates have never been more appealing. Many homeowners have taken advantage of the interest rate cut choosing to make additional repayments to reduce the amount of interest paid on their mortgage. If your budget permits, making fortnightly or weekly instalments will also help to reduce the interest payable in each calendar month.
Still not sure what rate option to go with? Here are some tips to help you decide:
Go with a fixed rate loan if
- You believe interest rates will rise
- Finances have tightened your belt and you need to know your expenses
- You don’t need extra features such as a redraw facility
Go with a variable rate loan if
- Interest rates are expected to drop
- You have financial surplus to ride the fluctuations in the interest rate cycle
- You want to be able to make extra repayments
Related Link: Compare Home Loans