Variable rate mortgages are a popular home loan choice for Australian borrowers. By searching and comparing variable rate mortgages online you can feel confident you have found some of the best deals in the market.
Variable rate home loans offer interest rates defined by the Australian industry cash rate. When interest rates are low, lenders can pass on these rates to borrowers, making it an excellent time to secure a variable rate mortgage and reap the potential savings.
Variable rate mortgages are an attractive loan option for borrowers as it offers more flexibility than a fixed rate mortgage. As well as giving Australians some of the most competitive interest rates in the market, a variable rate home loan has a huge range of features which include redraw facilities and the option to make extra repayments at the frequency of your choosing.
Unlike a fixed rate mortgage, your repayments will change along with the market rate fluctuation, making it harder to budget. On the plus side, this will allow you to benefit from any interest rates falls. But this also means that you need to accommodate for interest rate rises. It’s a great idea to try and factor in a two percent buffer to allow for interest rate movements so you are prepared for an increase in your home loan repayments.
If you are unsure about whether to choose a fixed or variable interest rate you could consider splitting your loan across both rate options, or fixing your loan for just a set period of time.
Before taking the leap it’s a great idea to arm yourself with as much information as possible by searching and comparing a range of Australian variable and fixed rate home loan options.
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