Peter Mastroianni
Rank: 1758 / 5440
2 selected videos
Consolidation loans
This is where you can combine or consolidate several loans into one single rate loan secured by a mortgage. For example, having a home loan and combing the car and personal loan which would result in a reduced rate of interest.
Advantage
Combining several debts will mean a lower overall interest rate and cheaper fortnightly/ monthly payments.
Disadvantage
Loans that would normally have been paid in a short period are now not finalised until the mortgage is paid off.
Related topics : debt consolidation loan interest rates / mortgage rate home loan / car interest rate loan
Variable rate loans
The variable rate is the most popular product in Australia’s lending market. the interest rate can vary through the course of the loan, either up or down, depending on what’s happening in the broader economy.
Advantage of a variable loan:
If interest rates drop, repayments drop
Generally extra additional repayments on the principal can be made without adjustment. Meaning that the loan can be paid off faster.
Disadvantages:
If the interest rate rises, repayments also rise, meaning that...
Related topics : home loan interest rate australia / home loan interest rate comparison / interest rates loan
2 Resources