#Basic Variable Rate Home Loans

The real difference between variable and fixed rate home loans. Which suits you better? 🤔

⚠️ Thinking about fixing your rate? Make sure you understand the limitations first. With many fixed rate loans: • Additional repayments are capped – you can usually only pay a limited extra amount each year. • No redraw facility – once you pay extra, you often can’t access those funds again. • Potential break costs – if you refinance, sell, or change the loan during the fixed term, there may be significant economic break fees. Fixed rates can absolutely suit the right situation — but flexibility is often reduced. If you’re unsure whether fixing is the right move for you, let’s talk it through.

What is a fixed rate home loan? A fixed rate home loan means your interest rate is locked in for a set period, usually between one and five years. During that time, your repayments stay exactly the same, even if variable interest rates move up or down. The biggest benefit of a fixed home loan in Australia is certainty. You know exactly what your repayments will be for the fixed term. The downside? If you sell the property or refinance during the fixed period, the bank may charge break costs. These fees are calculated at the time and can’t always be predicted in advance. When deciding how long to fix your home loan, it’s worth asking yourself: are you likely to be in the same job, income position and life stage in five years’ time? If not, a shorter fixed term may suit you better. If you’re comparing fixed vs variable home loans in QLD, book a free chat and we’ll walk through what makes sense for your situation. Link in bio.

A fixed rate lets you lock in your interest rate for a set period, usually between one and five years. During that time: • your repayments stay the same • rate changes from the Reserve Bank don’t affect your loan • you usually can’t make extra repayments • offset accounts typically aren’t available Because the lender is relying on that fixed arrangement, breaking a fixed rate early can come with a break cost. How large that cost is depends on market conditions at the time — but there will almost always be one. Some people choose a fixed rate for predictable repayments and budgeting. Others do it because they believe fixing at the right time will reduce interest over the life of the loan. What’s important to understand is that fixing is not risk-free — and predicting rate movements is difficult. Even when the RBA changes rates, banks don’t always move in the same direction. This is the type of detail we explain upfront at @growwellfinancial, so borrowers can decide what works best for their situation.

Did you know your everyday debts can affect how much you can borrow for a home? 🏡 Many people focus only on their income when applying for a mortgage, but lenders also look closely at your existing debts and liabilities. For example: 🚗 A $20,000 car loan could reduce your home borrowing capacity by roughly $60,000 💳 A $10,000 credit card limit could reduce your borrowing power by around $50,000 Even if you’re not using the credit card, lenders still count the full credit limit when assessing your loan application. That’s why strategic financial planning before applying for a home loan can make a huge difference to how much you can borrow. At Equity Plus Loans we help clients structure their finances properly before applying, so they can maximise their borrowing power and achieve their property goals faster. 📩 Thinking of buying a home soon Send us a message and let’s review your borrowing capacity. #AustralianProperty #MortgageBrokerAustralia #HomeLoanTips #BorrowingPower #firsthomebuyer

26 lenders increased interest rates on fixed term home loans in the past fortnight! This is in anticipation of at least one upcoming Reserve Bank cash rate rise. If the Reserve Bank increases the cash rate, variable interest home loan rates will go up as well. NOW is the time to review your home loan. Comment ‘RATE’ and to see if we can lock in a (relatively) low interest rate and avoid the rate rises. Or if you’d prefer to speak to us in person, privately, book a free consultation via the link in our bio.

1️⃣ Bank statements In the vast majority of home loan applications, lenders do NOT require your bank statements to check your living expenses. They go off what you declare your expenses will be post-settlement - not what they are right now. If you’re living at home with basically no expenses but you’re buying a property to move into, your expenses will obviously change. And vice versa - if you’re paying rent now but moving back in with parents after settlement, your living expenses will look very different. The only time lenders really scrutinise your spending is when you apply with the bank you do your day-to-day banking with... because they can already see everything 👀 That being said, we as brokers still have to collect your bank statements to verify what you declare is in line with what you’ve spent in the past 3 months or so 2️⃣ No credit history In Australia, the credit system doesn’t punishes you for not having credit conduct. Miss repayments? Defaults? Too many enquiries? Score goes down. But if you have NO credit history, you’re not being penalised for anything, and it won’t stop you getting a home loan. There’s a massive misconception that people “need” a credit card or car loan before applying to “build up their credit score”. That is completely false and you’re just wasting time. 3️⃣ Starting a new job Starting a new job is usually not a problem. If it’s permanent full-time or part-time, most lenders are fine even if you’re on probation. Sometimes all they’ll need is your employment contract or just the first payslip. The only time it can get tricky is if you’re casual, or if the application needs Lenders Mortgage Insurance (LMI)

What is a variable home loan? A variable rate home loan means your interest rate can move up or down over time. It’s often influenced by the Reserve Bank of Australia cash rate, but banks can adjust their variable rates independently as well. Variable rates don’t change every day, but they can change monthly. That means your repayments may increase or decrease depending on market conditions. One of the biggest benefits of a variable home loan in Australia is flexibility. You can usually make unlimited extra repayments and pay the loan out early without penalty. If you’re unsure whether a fixed or variable home loan suits your situation, book a free chat with our team and we’ll explain your options clearly. Link in bio.

Your home loan repayment might not actually need to go up after this 0.25% rate rise When your lender reduced your rate during the interest rate cuts last year, it’s possible they never automatically decreased the actual repayment (unless you asked them)! Which means this latest rise might not change your repayment if you are already paying above the minimum. > Worth checking your minimum repayment. > Worth checking your rate and making sure it is at market . A quick review costs nothing and could make sure you are structured properly during a rising rate environment

Fixing your interest rate isn’t to try to beat the banks at their game, it’s to give you certainty. Sacrificing flexibility for a period of time, might suit your circumstances.

These things can reduce your borrowing power👇 • Credit card limits (even if you clear them every month) • Car finance • HECS/HELP debt • Personal loans • Buy now, pay later accounts (like Afterpay) Small commitments can make a big difference to how much you’re approved for. Send this to someone planning to apply for a mortgage soon. Disclaimer: This is not financial advice and is provided for educational purposes only. (mortgage hacks Australia, increase borrowing capacity, home loan secrets, why your loan got rejected, property buying tips Australia, first home buyer mistakes, mortgage strategy Australia, hidden factors affecting home loans, smart property investing Australia)

[Should You "Fix" Your Home Loan? Instagram Live Tonight] The fix vs. variable question is on a lot of people's minds right now, so tonight I'm running a webinar to help you think it through properly. I'll walk through what the Big 4 are actually charging, what the banks are predicting for the rest of 2026 and what it means for your repayments in real numbers. Tonight at 7:00pm.