First-time Homeowners: Fixed Vs. Variable Rate Loans
Living in a cramped apartment complex with your growing family can be frustrating to many, considering how
If you’re one of those in this dire situation, considering buying your own home is probably the right decision to make.
Making your dream of starting a family in your new home come true doesn’t need to be stressful as applying for a home loan can be an overwhelming process, especially for young couples. But that doesn’t have to be the case.
First-time home buyers
For first-time home buyers, there are plenty of options that they can consider to jumpstart their home loan application.
Some banks and even non-bank lenders offer a specialised loan package with built-in features that aim to make home buying less stressful--emotionally and financially.
READ MORE: How To Avoid A Stressful Home Buying Experience
In this high time of high uncertainty, it’s important to take note whether going for a fixed or variable rate will work for one’s circumstance.
Fixed-rate home loan
First-time home buyers can consider getting a fixed-rate home loan.
This allows them to pay a fixed interest rate for the first year into their mortgage.
With this you can have a headstart on your new mortgage and pay a fixed interest rate despite the possible fluctuations of interest rate in the market.
READ MORE: 5 Key Things To Consider Before Getting A Home Loan
This interest rate is extremely helpful during times of high uncertainty. With this, you’ll be guaranteed that you will be paying the same interest rate regardless of the economic condition or the cash rate.
Variable rate home loan
If a fixed interest rate doesn’t sound attractive to you, you can opt for variable interest rate home loans.
With this, the interest rate can change depending on different factors in the market.
This is particularly helpful in a booming economy where interest rate projections are promising.
At Intellichoice, we help our clients by helping them through the process and give them the best deal at the most reasonable rate. Talk to one of our loan specialists now!
Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today.!