A variable home loan interest rate should move up and down with market interest rates. Variable home loan interest ratesare determined by the cash rate set by the Reserve Bank of Australia. When the Reserve Bank alters the official cash rate, most variable home loan interest rates change by a similar amount.
In recent months most lenders have increased their variable rates beyond the Reserve Bank increases due to the increased cost of obtaining funds via money markets.
There are two main types of variable home loans. The basic variable and the standard variable home loan.
The basic variable home loan usually has a discounted interest rate and in some cases can have more fees than the standard variable rate. The standard variable rate is generally higher because of the additional options that apply to the loan.
Some lenders have basic variable home loans that do cover most of the options without the additional fees. We can help you identify what you need and the loan with the lender that offers this.
Listed below are some of the options that are available with different lenders
Redraw facility
Offset account
Direct debit
Salary Credit
Internet banking
Split loan feature
Additional repayments
Construction
Get pre-qualified for a loan today. Click here and fill out our online form and we will prepare a borrowing capacity report for you.
Should you have any further questions please click here to email us.
