Variable rate loans are very popular and are usually lower than fixed rate loans. This type of
loan can fluctuate up or down and is easier to refinance or increase, as minimal cost with
doing so exists. Variable rate loans allow additional payments at your leisure.
Fixed rate loans can provide payment security for up to five years at a time, given your
ability to budget on a known monthly amount. If you have reason to break your fixed rate
home loan before the expiry of the fixed rate you almost always will have to pay a rate
break charge. Principle reduction (additional lump sum repayments).
The ability to part fix your home loan interest rate is a good option to consider. This option
allows you to work out how much you would like to repay over a particular period of time
and leave the interest rate variable. The balance of your first home buyer home loan
remains fixed and provides you with certainty of repayment.
A very popular option amongst Australian Mortgage Managers P/L mortgage reduction
clients, a line of credit home loan allows for a highly flexible method of managing your
home loan. An Australian Mortgage Managers P/L mortgage reduction program has helped
many with eliminating their first homebuyer home loan much sooner. With the equity
created you may invest in residential investment property, renovations, shares, (subject to
your own financial advice) and anything else which may interest you. A greater level of
financial discipline is required when borrowing this way.