Choosing the right home loan: Fixed-rate or variable-rate?
There are a lot of different financial options available for buyers interested in securing Burpengary real estate. There are two main types to choose from: a fixed-rate home loan or a variable-rate home loan.
Here are the basic differences between the two.
Fixed-rate home loan
A fixed-rate home loan simply means the interest rate charged on your repayments is set at a certain percentage for a period of time. This means your repayments won't be affected by the fluctuating financial market, giving you some safety and security to plan and budget your repayments.
Of course, these home loans aren't as flexible as their variable counterparts, so this could be something to consider before committing.
Variable-rate home loan
On the other hand, a variable-rate home doesn't have a set interest rate, which means that each repayment has the interest calculated at the time. While there is an increased degree of risk with these – especially during volatile economic times – the degree of flexibility that comes with these mortgages is great.
The ability to add different facilities like redraw and offset accounts provides the opportunity to begin using your own wealth to your advantage, allowing you to potentially save time and money over the long term.