Fixed vs variable? Find the ideal home loan for you.

Are you in the market for a home loan? If so, it is important to understand the difference between fixed and variable home loans. Knowing which one is right for your financial situation can be tricky, but with some research and help from your mortgage broker, you’ll have no problem finding the best home loan option for you.

Fixed home loans

Fixed home loans are a great option for homebuyers who want to secure the same interest rate over the entire term of their loan. This means that your repayments will remain consistent throughout the life of the loan, making budgeting easier. In addition, borrowers are able to make extra repayments without penalty and can even split their home loan between variable and fixed terms with multiple lenders. However, one thing to keep in mind is that if you decide to switch from a fixed home loan to a variable home loan or vice versa, you may incur fees from your lender.

Variable home loans

Variable home loans offer more flexibility than fixed home loans, as they allow you to take advantage of market fluctuations and potentially reduce your overall interest payments. With variable home loans, you also have the option to make additional repayments or redraw funds when needed. The downside of variable home loans is that there can be more volatility in repayment amounts from month to month and rate changes may occur without warning.

Speak to your mortgage broker

No matter which type of home loan you decide to go with, your mortgage broker will be an invaluable resource for finding the option that suits your needs. They are experienced in both fixed and variable home loans and will be able to assess your individual circumstances and financial goals before making a recommendation on which home loan is most suitable for you. What’s more, they can help negotiate on your behalf with lenders to secure better rates or terms that fit within your budget.

Choosing between a fixed home loan and a variable home loan is an important decision to make when buying a home. By doing your research, talking with your mortgage broker, and weighing the pros and cons of each type of home loan, you’ll be well prepared to make an informed decision that will benefit you now and in the future.

If you would like more information, get in touch with us today and let us help you streamline the home loan process, from dealing with paperwork to helping you secure a competitive home loan rate.