Variable Rates Home Loans Should you fix your home loan rate if the RBA move this month? – A couple assessing their household costs including their home loan rate. Picture. may drop rates further regardless of what the RBA does then. Many fixed and variable rate loans are as low as 3.49.
Benefits of a variable rate mortgage. Home loans with variable interest rates can often prove to be quite affordable. Because most lenders base their variable interest rates on the RBA’s official cash rate, if the cash rate falls, your lender may pass this rate cut on to you, potentially lowering your home loan repayments.
1 Year Arm Rates Index Plus margin adjustable-rate mortgages (ARM) – Interest Rates, Index Rate. – ARM: Margin. To determine the interest rate on an ARM, lenders add to the index rate a few percentage points, called the "margin." The amount of the margin may differ from one lender to another, but it is usually constant over the life of the loan. Index rate + margin = ARM interest rate