Variable rate home loans
- What is a Variable Rate Home Loan?
- If a loan has a variable rate, this means the interest rate fluctuates in line with market rates. Market rates rise and fall periodically, depending on movement in the economy, and any changes are set by the Reserve Bank.
- How does a Variable Interest Rate work at QTCU?
- Variable rate home loans are the most common type of home loan financed by QTCU. Variable rates are available for both owner-occupied and investment loans, and all QTCU home loan overdrafts also work on a variable basis. At any time you may switch to a fixed interest rate for 1, 2 or 3 years, or you can choose a split interest rate, which means a portion of your loan is fixed and a portion remains variable.
- Are QTCU Variable Rate home loans competitive?
- Yes. Our variable interest rates are particularly competitive and you may make extra or lump sum repayments on your loan without incurring penalties, and there are no capped or maximum repayment amounts or monthly account keeping fees.
- What are the benefits of choosing a Variable Interest Rate?
- Interest rates will fluctuate due to forces beyond your control. A variable interest rate allows you to take immediate advantage of any drop in interest rates. It also gives you the flexibility to fix at any time if rates are on the rise. With a variable rate, you can also choose to borrow extra funds at any time, provided you meet our lending criteria.
- Can I attach other features?
- Yes. QTCU variable rate loans also offer a full choice of extra features, including redraw and offset facilities, interest only repayments and split lending options. You can enjoy the convenience of these features while taking advantage of low market rates and the ability to fix at any time.
- Is a Variable Interest Rate right for me?
- A variable rate offers greater flexibility, and that is why it suits such a wide variety of borrowers. If you are concerned about rising interest rates you can also reduce your exposure to rate changes by splitting your loan. It all depends on the level of risk you feel comfortable with and how you believe rates will change.
- Can I switch from a Variable rate loan to a Fixed rate loan?
- Yes. You can move from a Variable rate loan to a Fixed Rate loan at any time, by paying a fixing fee.
A Product Disclosure Statement (PDS) is available for this product and you should read the PDS before making any decisions about the product. As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on this advice, consider its appropriateness to your circumstances.
