Gaining finance for a new home is one of life’s biggest hurdles, yet there is no one-size-fits-all home loan on the market. That’s because what works best for one person may not be an ideal fit for another. But with online tools such as our Australian home loan calculator, finding the right home loan for your needs is becoming simpler.
To find a suitable mortgage for your needs, work out the fees and charges associated with the loan and whether you wish to have a fixed or variable interest rate. Our home loan calculator for Australian borrowers will help you to estimate your repayments. You can also calculate the interest you might save and the time you can shave off your home loan by making extra repayments.
Fixed rate loan
Fixed rate home loans can be great for borrowers who enjoy the certainty of knowing exactly how much money they need to repay each month. That’s because the interest rate on a fixed loan is set for an agreed term meaning that repayments will remain the same during the period. While this scenario provides homeowners with a sense of fiscal security, there are restrictions with a fixed loan. For example, your lender may set limits on how many additional repayments you can make, which may prove less appealing if you’re aiming to clear your home loan debts sooner rather than later. Likewise, if interest rates head south, you’ll be stuck paying a higher interest rate.
Variable rate loan
With a variable rate loan, the interest rate fluctuates up and down in tandem with a host of national and international factors such as changes to official interest rates. Variable rate loans usually offer the flexibility of making extra repayments, which is useful if you plan to pay off the mortgage fast.
Shopping around online is a great way to help you secure the best home loan for your circumstances. Visit the RateCity home loan comparison page and home loan repayment calculator for more information.