A variable interest rate home loan (sometimes also referred to as a "floating" or "adjustable" rate home loan) is a very popular product in the lending market and a very competitive product offered by most of the lenderscredit providers.
Who is Suited to a Variable Interest Rate Home Loan?
This type of home loan is a perfect fit for:
>> First-time home buyers who just want a home loan product that is simple and not confusing to manage
>> People who just want to stay settled and are not willing to move whether in their work air max 90 black wholesale , home, personal life or they are not willing to move to another lender
What Should I Consider When Choosing the Loan?
When choosing it air max 90 shoes wholesale , you should always research and consider the following terms & conditions, being offered by the many lenderscredit providers:
>> Treat any "honeymoon" interest rate offers with caution air max 90 trainers wholesale , and remember to always check whether the discount rate applied to the variable rate is a set amount below whatever the standard variable is
>> Remember that low rate home loans are not always the best choice
>> Try to pick a loan term that suits your finance
>> Decide on what matters most to you (e.g. does it meet your financial goals?)
What are the Features of a Variable Interest Rate Home Loan?
You must know all the below mentioned features of the loan package so you can maximise the benefits:
>> Take advantage of falling "interest rates" when the Reserve bank decides to drop their official rates
>> Make unlimited "extra repayments" each month so you can pay off your home loan faster
>> Take advantage of "redraw facilities" so you can withdraw any extra payments you have made on top of your normal repayment amounts if you need the cash
>> Take advantage of a 100% offset account
What are the Advantages and Disadvantages?
There are many advantages of choosing the loan package such as:
>> Flexibility: It has some flexible features like having options of making additional payments, low introductory interest rates or redrawing facility.
>> Lower repayment option: As the interest rate varies with that of the market index air max 90 essential wholesale , if the rate falls, the amount of repayment also becomes lower.
>> Ability to pay off the loan faster: This loan type also has the option of enabling you to pay an extra repayment as advance towards the loan. Thus nike black friday sale 2018 , every month, if you pay an extra amount in addition to your minimum payment amount nike shoes black friday deals , you can repay the loan faster.
>> Helps in Budgeting: As this loan gives you the option of weekly, fortnightly or monthly repayment air max 90 wholesale free shipping , you can maintain your budget accordingly.
>> Redraw Facility option: This loan type gives you the option of redrawing the additional amount you have made towards the repayment, in addition to the minimum repayment amount.
While the loan has a lot of upsides air max 90 wholesale china , it does have some disadvantages, such as:
>> Variable rate is subject to fluctuations: The interest rate is subject to fluctuations and can either rise or fall at any time during the period of the loan. Changes in the interest rate are at the discretion of a lender and they are meant to be broadly in line with market conditions
>> Repayment may become more: So if the interest rate rises wholesale air max 90 sale , the amount of monthly repayment also becomes more and it may become more than the amount you can afford.
>> Redraw facilities can be subject to limitations, including minimum withdrawal amounts allowable and may also include redraw fees
>> You cannot arrange a rate lock
>> You cannot pay Interest in Advance in some circumstances
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21.10.2019 03:49
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