As per the recent Australian Bureau of Statistics, Australians have the largest number of homeownerships worldwide. However, owning a home and choosing the right home loan is not a cakewalk. So, before considering any home loan for yourself, think about the type of loan that is right for you. Because of assurance, Australian borrowers are more attracted to a fixed-rate home loan. If you are a first-time buyer or you have a tight budget to take a home loan, in that case, you can plan for taking a fixed rate loan in Australia. While doing this, you must carefully plan your budget as well as repayments. Why choose fixed-rate loans over Variable loans
In order to understand the terms and condition of all the home loan can be confusing for borrowers- like choosing between fixed and variable rate loans. While picking home loans, first make sure which is more suitable for your needs. You can also check its pros and cons before making your decision. As the name suggests, a fixed-rate mortgage defines that the interest rate will remain the same until the fixed-rate term. One of the biggest benefits of a fixed home loan is its cash flow certainty. Your repayments will remain the same whether it is weekly, fortnightly, or monthly. On the other hand, in a variable rate mortgage, a borrower can change the interest terms depending on the Reserve Bank of Australia’s official cash rate. Considerations before getting a fixed rate home loan Extra repayments: Before applying for a fixed home loan rates in Australia, it is crucial to know what restrictions put by lenders end on making repayments. Because most fixed home loans rate provided by lenders limit your ability to make extra repayments. Cash flow certainty: One beneficial aspect of choosing a home loan with fixed rates is that borrowers know what their repayments will be since the interest rate remains the same for a period of time. Revert rate: Another detail to think about is the revert rate, which’s the interest rate loan move to after the fixed term. Also, revert rates are generally higher, which could mean having to renegotiate a loan at the last of the fixed term to keep a competitive rate of interest. Are you struggling to find the best fixed-rate home loans in Australia from reputed lenders that best suit your needs? If yes, then take help from the best home loan experts- Your Finance Adviser. Your Finance Adviser is the most trusted and well-reputed finance advising company in Australia. We have a skilled team of top-rated home loans broker in Sydney who have years of experience in providing valuable home loan advice to various clients and help them fulfill their dreams of owning a home in Australia. Want to find out more about our consultation services? call us on 1300 276 537 and mail us: [email protected]
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rAJAN KHATTAKDirector and founder of Your Finance Adviser, I have over 12 years of experience in mortgage broking. Archives
March 2022
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