Obtaining finance for your new home is one of life’s biggest hurdles, and there is no one-size-fits-all home loan available on the market. That’s because what might suit one borrower may not be an ideal fit for the next. But with online tools such as our home loan calculator Australia, finding the best home loan for your needs is becoming much easier.
To find the best 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 mortgage repayments. You can also calculate the interest you might save and the time you can shave off your home loan by making additional repayments.
Fixed rate loan
Fixed rate home loans can be a great option 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 period meaning that repayments will remain steady during the term. While this scenario provides homeowners with a sense of fiscal security, fixed loans do have their restrictions. 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 mortgage debts sooner rather than later. Likewise, if interest rates plummet, 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. For more information consult our home loan page for details or to work out repayments on a certain home loan, visit our home loan calculator Australia today.