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Optio finance
Floating Home Loan / Mortgage
Floating or Variable Interest rates
These are the most flexible home loan, interest rate options. The interest rate varies with the market but you can repay lump sums whenever you like without any extra cost.
It's for you if
you want the flexibility to pay lump sums off your home loan and you are comfortable knowing that interest rates could change at any time.
There is no way of telling what interest rates will do, even though some people claim they have the answers, the reality is that there are numerous events that could have a major impact on rates. Natural disasters, terrorist attacks and revolts are events which nobody can foresee and they tend to have major impacts on a variety of market mechanisms. A good rule is to forget about what everybody says and to rather examine your own position carefully.
If you are an income earner on a set wage and you have recently purchased a house, you probably need to consider taking a fixed rate. If a major move in the interest rate is going to wreak havoc with your budget, rather set yourself up for a set period, and don't believe anybody who tells you what the rates are going to do, these rate predictions are usually in the short term and usually just educated guesses and some times they are just guesses.
Floating or variable rates can be very beneficial if you are in the financial position to handle swings in interest rates and if you are looking to pay off your home loan quickly.
If you are a commission earner for example and your income has big commission spikes which allows you to pay more a variable rate would probably be a good option as you may want to pay large one off payments into your loan.
There are various scenarios but the main rule is not to make a decision based on what interest rates are going to do but rather base your decision on what you are going to do.
These are the most flexible home loan, interest rate options. The interest rate varies with the market but you can repay lump sums whenever you like without any extra cost.
It's for you if
you want the flexibility to pay lump sums off your home loan and you are comfortable knowing that interest rates could change at any time.
There is no way of telling what interest rates will do, even though some people claim they have the answers, the reality is that there are numerous events that could have a major impact on rates. Natural disasters, terrorist attacks and revolts are events which nobody can foresee and they tend to have major impacts on a variety of market mechanisms. A good rule is to forget about what everybody says and to rather examine your own position carefully.
If you are an income earner on a set wage and you have recently purchased a house, you probably need to consider taking a fixed rate. If a major move in the interest rate is going to wreak havoc with your budget, rather set yourself up for a set period, and don't believe anybody who tells you what the rates are going to do, these rate predictions are usually in the short term and usually just educated guesses and some times they are just guesses.
Floating or variable rates can be very beneficial if you are in the financial position to handle swings in interest rates and if you are looking to pay off your home loan quickly.
If you are a commission earner for example and your income has big commission spikes which allows you to pay more a variable rate would probably be a good option as you may want to pay large one off payments into your loan.
There are various scenarios but the main rule is not to make a decision based on what interest rates are going to do but rather base your decision on what you are going to do.