Variable-Rate Loans

Key Features of Variable-Rate Loans

• Potentially Lower Initial Rates: Usually starts with a lower interest rate compared to fixed-rate loans.
• Flexibility: You can benefit from market rate drops.
• Repayment Options: Often comes with various repayment options and features.

Potentially Lower Initial Rates

Variable-rate loans typically offer lower initial interest rates than fixed-rate loans, making them an attractive option for borrowers looking to save on monthly repayments.

• Competitive Rates: Take advantage of lower starting rates, which can mean lower initial payments.
• Long-Term Savings: If rates remain stable or decrease, you can save significantly over the loan term.
• No Rate Lock: You’re not locked into a higher rate if the market shifts favorably.

Flexibility

With variable-rate loans, borrowers have the flexibility to adjust their repayments according to market conditions, which can lead to significant savings.

• Lower Payments When Rates Drop: If market rates decrease, so do your repayments, giving you immediate financial relief.
• Rate Adjustments: Experience potential benefits if interest rates fall during the loan term.
• Adaptability: Easily switch to a fixed-rate option if desired.

Repayment Options

Variable-rate loans often come with a range of repayment options, allowing borrowers to tailor their mortgage to their financial situation.

• Interest-Only Payments: Choose interest-only repayments for a period to manage cash flow.
• Extra Repayments: Make additional repayments without penalties to pay off your loan faster.
• Offset Accounts: Some variable loans offer offset accounts to reduce interest charges.