It’s hard to believe that we’re already in the second month of 2017, when it was a tiny amount of time ago that we were getting ready for the festive season! Nonetheless, time has a funny way of racing by and for those of you about to apply for a mortgage, you might be keen to learn about the current rates and conditions that are in place right now (February 2017).
Below, you’ll find information on three specific types of home loan, their current marketable rate (the one that they are offering to new customers), as well as the minimum deposit that they require.
Standard Home Loans with Variable Rates
As things currently stand, the variable rate offered by the majority of banks in Melbourne, Sydney and Brisbane is 3.59%. They are variable – which means that they can fluctuate as the months go by, but this is one of the lowest rates that has been present within Australia. Most banks will require a 20% deposit, paid up front.
Fixed Home Loan Rates
Some banks are offering two years at a rate of 3.59%, while the majority are offering just a single year – which can still be pretty reassuring for new home buyers. Although the percent is the same, the ability to moderate costs for a full twelve months can be beneficial, as can the reduced deposit amount of 15%.
The above two examples are the case with the majority of mortgages, but there are some that defy the odds and offer more beneficial, or less appealing, alternatives. For example, there are three banks currently offering higher interest rates of 3.69% – but don’t gasp just yet, there is a benefit in this scenario.
These banks are also accepting as little as 10% of the total cost of the sum borrowed to act as a deposit, a full 50% less than other banks are asking for. This can be a great solution for those that are keen to buy their own home, but might not be able to save up the extra tens of thousands towards their deposit. It is worth noting that they should also expect to pay back a little extra on their interest each month.
Spread out over the course of an average mortgage of twenty-five to thirty years, this can be a minimal expense however, so if you’d like to buy your first home without a huge expense upfront; it could well be the most viable of the three options right now.