![]() One of the benefits of a variable rate home loan is that you can make extra repayments as often as you like, with no early repayment fees or break costs. That means that the interest rate is variable, rising and falling in line with market interest rate changes. There’s our Flexi First Option home loan, which is a variable rate home loan. When it comes to home loans, or mortgages, you have a few different choices. Variable rates are based on a number of factors including market and economic conditions. There’s no crystal ball to predict how high interest rates might go. How high could variable interest rates go? ![]() If you like, you can choose back-to-back fixed rate terms over the life of your loan, simply by re-fixing your home loan at the end of each fixed rate term. Read more about interest-only home loans.Ĭan I choose fixed interest for the life of my loan? This will need to be paid off over a shorter loan term, which means higher repayments for the remaining loan term. At the end of the IO period, you will have the same principal amount. If you’re on Interest Only repayments, you pay the monthly accrued interest each month but don’t pay down the principal amount. Then on your repayment due date, we’ll add up all your daily interest for the period and charge it to your home loan account. Every evening, we’ll multiply your remaining balance by your interest rate and divide it by 365 (or 366) days to calculate your daily interest. ![]() Your interest is calculated daily and charged on your monthly repayment due date. Test the positive impact of making extra repayments (just add an amount to that field).See how weekly, fortnightly or monthly repayments affect your loan. ![]()
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