Let's talk about the variable rate loan option, it is versatile and affordable, making it a popular choice among homeowners and investors.
Not sure where to start? Don't worry the team are here to guide you every step of the way. Reach out today for a no obligation chat.
Speak To The Team TodayThe frequency of interest rate changes can vary depending on your lender and the terms of your loan. Typically, lenders review their variable interest rates periodically, often in line with changes to the official cash rate set by the Reserve Bank of Australia (RBA).
Variable interest rates can be influenced by various factors, including movements in the official cash rate, changes in economic conditions, lender funding costs, and competition within the mortgage market. Lenders may adjust their rates independently to reflect these factors.
The impact of an interest rate rise on your repayments depends on several factors, including the size of your loan, the term remaining, and the extent of the rate increase. Lenders typically provide examples or calculators to help borrowers estimate potential repayment changes.
Yes, many variable interest home loans offer flexibility, allowing borrowers to make additional repayments without penalty. Making extra repayments can help reduce the loan balance faster and save on interest costs over time.
While variable interest rates are influenced by market conditions, borrowers may have some room to negotiate with their lender, especially if they have a strong credit history or are willing to switch to a different loan product. It's worth discussing your options with your lender to see if a better rate is available.