Canberra Home Loans Mortgage Information
If you are looking for information about a Canberra home loan, you have many options available to you when it comes to choosing your home loan. Here are just three home loan options you will have when seeking finance for your new home in Canberra.
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Canberra standard variable rate home loans
Standard variable rate home loans generally offer you greater flexibility. With a standard variable rate home loan your mortgage repayments can either rise or fall with changes in official interest rates. If official interest rates rise, then your mortgage repayments will rise and conversely if interest rates fall, your mortgage repayments will also fall. Standard variable rate home loans are available from both the more traditional bank home lenders as well as the newer non bank lenders operating in Canberra.
Fixed rate home loans Canberra
Fixed rate home loans allow you to lock in an interest rate for a specified period, usually between one and five years, however periods of up to ten years may also be available. Whether official interest rates rise or fall within your fixed rate period, your monthly mortgage repayments will remain the same. Fixed rate loans can be a huge benefit when interest rates are rising. However, if official interest rates are falling, then you will still have to make repayments at the higher interest rate that you locked in at the beginning of the loan term. You need to consider carefully whether you think interest rates are set to rise or fall before deciding on a fixed rate loan. One advantage of the fixed rate home loan however, is that you have certainty in your repayments as they will not change for the period of the fixed rate term. One disadvantage is that you can generally not make extra repayments on a fixed rate loan, although some fixed rate loans may allow a certain extra amount to be repaid.
Split rate home loans around Canberra
For anyone purchasing a new home in Canberra, it may be worth considering a split loan as this offers the best of both worlds of the fixed rate and standard variable rate home loan. A split rate home loan offers some of the security of the fixed rate home loan with the greater flexibility of a standard variable rate home loan. You can lock in part of your home loan at a fixed interest rate and you can still pay extra off the variable rate portion of the loan. Many Canberra homeowners opt for the split rate home loan especially in times where official interest rates are expected to rise.