When taking up a new home loan, several factors have to be considered. The Home Loan rate is probably the most important factor that has to be considered.
There are primarily three options, each with its own advantages and disadvantages:
Variable Rate: This is the most conventional interest rate that would apply to most home loans. The rate quoted is linked to the
Prime Lending Rate and is subject to the fluctuations of this rate. Your debit order will be adjusted automatically should the rates change.
Fixed Rate: This is the rate contracted between you and the bank for a pre-determined term, 12, 18, or 24 months.
A three-month Fixed Rate option is available for those who qualify. The Fixed Rate will appeal to those who wish to fix their home
loan repayments without the influence of changes in the Prime Lending Rate, allowing for better budgeting.