Interest Rates Interest rates determine the cost of your home loan and what you pay back each month. Even a small difference in interest rates can make a big difference to your repayments. Speak to us now Types of interest rates Variable rate The interest rate charged on the outstanding balance fluctuates as the market interest rates change. As a result, your payments will vary as well. This is known as a variable interest rate loan. The advantage of variable rates is that they usually go down if the cash rate decreases, which reduces the amount of interest you pay. The opposite also applies: variable rates usually go up if the cash rate is increased, which means you will pay more interest. The rate may also increase even if the cash rate does not. Fixed rate Interest rate refers to a loan agreement where the amount of each payment remains constant. It also helps you plan your finances because you know exactly how much you will be repaying. The disadvantage is you won’t benefit from falling interest rates. Get the right loan for you If you need help then you can call us on 1300 YFA BROKER or enquire online and one of our expert mortgage brokers will assist you to find the cheapest loan available. Click Here For Obligation Free Assessment
