August 15, 2013
Q: What’s the differencebetween Fixed & Variablerate home loans?
A: Fixed home loans have traditionally been associated with rigid conditions, but with flexible new products available, and relatively low interest rates. A fixed rate home loan can be good if you want to carefully budget your repayment and gives you a degree of certainty and security. Variable home loans usually provide options and flexibility, but they can also be risky in a rising interest rate market ifyou’ve over capitalised on your loan. It’s important to forward plan and budget when taking out a variable rate loan for hikes in interest rates.