When you take out a mortgage, you will choose a variable, fixed or split interest rate. We’ll look at the pros and cons of a variable rate home loan.
A variable home loan is a loan in which the interest rate varies over time. It can go up or down depending on the market and the Reserve Bank of Australia’s official cash rate.
When deciding if a variable rate mortgage is right for you, consider your financial situation and personal behaviour and lifestyle.
You might prefer a fixed rate mortgage if you want certainty over your monthly repayments. However, a variable rate home loan may be best if you want to make extra repayments without any restrictions or caps.
In some ways, you can access the best of both worlds with a split loan. This lets you lock in a fixed rate on a portion of our loan for a period - typically between one and five years - while the remainder has a variable rate.
Our team can help you decide if a variable home loan is right for you. We’ll also help you find a mortgage with competitive charges and fees, and flexible features, if that's what you're seeking. Get in touch with us today to understand your options.