Here, we walk you through the different home loan types – how they might work for you and your financial situation, and what you need to consider.
With a variable rate loan, the rate can go up and down. This means your repayments can vary.
If you’re worried about the impact of fluctuating interest rates on your ability to pay your loan, a fixed rate loan may better suit your needs. Your repayments are locked in, based on an interest rate that’s fixed for an agreed term (one to five years).
Essentially, you’re opting for certainty over flexibility with a fixed rate loan – peace of mind knowing exactly what your repayments will be.
This means having the certainty of a fixed rate on the fixed rate part of your loan, plus flexibility on the variable rate part of your loan.
Our Home Lending Specialists can help you decide if splitting your loan is right for you.
An interest only mortgage limits your monthly repayments to just the interest for an agreed period of time – usually one to five years.
Make sure your future finances can support your repayments. Take a look at our home loan repayments calculator to get an idea of what your monthly repayments could be.
It’s important to speak to your financial adviser before you decide to apply for an interest only home loan.
This means making repayments on both the loan amount (the principal) and the interest. While your initial repayments are higher than interest only repayments, the main benefits include:
Find out more about the reasons to pay principal and interest.
Lending and eligibility criteria, and fees and charges, apply for our home loans. The Complete Home Loan Package consists of an eligible home loan, one optional eligible credit card per customer and up to nine optional Offset Transaction Accounts per loan.
The information contained in this article is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this article without first obtaining specific professional advice. Also to the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL / Australian credit licence 234945, its related bodies corporate, employees and contractors accept no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this article.