Variable Rate Perth Home Loans
Perth mortgages with variable mortgage interest rates are available from many different lenders, all with varying interest rates and features. When it comes to real estate, the right home loan is crucial, which is why we work closely with you to find a low interest rate along with all the features you need.
Why Variable?Both standard or basic variable loans offer greater flexibility than fixed rates, and savings can prove substantial if the rates are low. With a variable rate, your repayments will fluctuate as rates change. So if you think rates are on a downward slope, then variable is a good idea. If rates are set to rise however, a variable rate will leave you vulnerable to increases as the rate increases. Talk through your options with your mortgage broker and ensure you make the right choice. Basic variable loans are a 'no frills' version that most lenders will offer. These loans usually come with a lower rate than other loan types - approximately 1% lower than standard variable or fixed rates. With a standard variable loan you typically get more options such as offset, redraw and split loan capacity, than you would with a basic.
Loan rates for standard variable loans will usually be a little higher than a basic variable loan. However, if you plan on using the added features then you are better off paying the higher rate. If you are not using the features, then consider a basic loan and take the lower rate.
Variable rate loans offer more than just flexibility, they often come with low rate for an introductory period, before reverting to the standard rate. But, variable rates are changed along with economic conditions and can go up or down, without much notice. With a local Mortgage Broker Perth, you can rest easy knowing all the hard work has been done for you, and you have the best deal available. Because our brokers are fully trained and qualified, as well as independent, you receive professional and unbiased assistance at all times.
Split rate home loans.If you are really struggling to decide over fixed or variable, then you could consider taking out a split variable/fixed loan. Typically the split is 50/50 or 60/40. This option allows you to keep part of the loan flexible, make extra repayments and save if rates fall, but protects the rest of the loan against rising interest rates. (Penalty rates will still apply if you quit the fixed portion of the loan early.)
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