Variable home loan rates
Floating interest mortgages – get the facts
There are some very good reasons for the popularity of variable home loan rates in Australia today. Many of these loan products have add on features and payment flexibility. Plus there’s also the fact that interest rates have been low and relatively stable for some time. But if you’re wondering whether a fixed or variable rate is best for you, your friendly ITP Home Loans professional is the person to ask.
What is a variable home loan?
Often referred to as a floating interest rate, variable home loan rates usually reflect the increases and decreases in the rates set by the Reserve Bank of Australia (RBA). However, lenders aren’t bound to these, and can set their own rates independently.
There are two basic types of variable home loans:
Basic variable home loans
Basic variable mortgages don’t have all the sophisticated features and flexibility of standard variable home loans, but they do offer lower rates. Sometimes these reductions can be up to 0.5% per annum.
Benefits of variable home loan rates
- A variable interest rate allows you to profit from a fall in interest rates, saving you a lot of money and lessening the life of your loan. If, on the other hand you have a fixed home loan rate, you’re locked into the same interest rate for a period of between one and ten years.
- The market in floating home loan lending products is highly competitive. Your ITP Home Loans broker will always get you the best variable home loan rate for your circumstances.
- Fixed rate home loans usually incur fees for extra repayment or refinancing before the fixed rate expires.
If you’d like to compare your variable and fixed rate options, take a look at our handy calculator.
No matter whether you’re thinking fixed or variable rates, in today’s competitive world of home mortgage lending your professional ITP Home Loans consultant will always be able to secure the most affordable home loan rate suited to your needs. So get in touch with ITP Home Loans today. You can email us, or make an appointment to see an advisor face to face. Alternatively, give our helpful ITP Home Loans consultants a call today on 1300 387 487.