Basic Home Loans

Packaged Home Loans

Introductory Rate Home Loans

Split Loans – Fixed & Variable

Variable Rate Home Loans

What is a Variable Rate Home Loan

A Variable Rate Home Loan is one where rates can vary at any time due to market force changes. Interest rates in Australia are set by the Resrve Bank. Should the Reserve Bank make a change to interest rates, then this will impact the cost that Lenders can obtain their funds and cause them to also review / amend the rates tey charge to borrowers.

There are many other factors that can impact the cost of funds for a Lender and it is possible to see interest rate movements occur outside the cycle of any Reserve Bank announcements.

 Types of Variable Rate Home Loans 

There are Essentially three types of Variable Rate Home Loans

• Discounted Basic Home Loans
• Professional Package Home Loans
• Introductory Rate Home Loans
• Split Home Loans

Advantages:

• Rates will remain aligned with the current markets for the current day.
• Should market rates fall, you could expect a reduction in your home loan rate.
• Payments are not fixed and additional payments can be made to the loan
• Additional payments above what is required are generally available via a Redraw Facility.

Disadvantages:

• Should market rates increase then you should expect your home loan rate to also increase
• When rates rise, you may need to pay a higher instalment to cover your loan repayments within the agreed term.