What Is The Average Standard Variable Home Loan Rate (SVR) In Australia Currently?
The average standard variable rate SVR in Australia right now (October 2016) is 4.83 per cent; The lowest SVR in the market right now is 3.63 per cent; The highest SVR is 7.16 per cent; The average three year fixed home loan rate is 4.34 per cent according to thefinancesite.com.au
Minimum Deposit %
Home Value Home Loan (Owner-Occupier Special)
Line of Credit Home Loan (LVR 3.59% Variable
Ultimate Fixed Home Loan (New Customers) 1 Year
3.59% Fixed – 1 year
Standard Variable Home Loan (Spring Special) (LVR 3.59% Variable
Is there any reason for you can’t save thousands of dollars?
The traditional thing we do for people who are willing to lend us money is to pay them interest on the loan. If they lend us $ 100,000 for ten years, we might agree to pay them 5% interest. Usually, this interest is compounded. This means that the interest is calculated after a certain period, often one month, and that amount is added to the balance of the loan. So on the next period you are paying 5% on the new balance.
The really important thing for the economy, in general, is that the interest rates commonly charged on loans have a big impact on people’s willingness to borrow money.
When interest rates are low, many people are happy to borrow money and have no trouble repaying because the loan balance grows quite slowly. But if interest rates are high, the compounding effect is magnified. At 10% interest your loan balance will double every 7 years (approximately), at 5% it takes almost 15 years to double (assuming you make no payments).
So higher interest rates tend to stifle the economy by making it more expensive to borrow money. When rates are high, people are less likely to buy a home or car or borrow to start a business. They are also less likely to buy all kind of things they don’t really need. A slower economy means lower incomes and fewer taxes paid which leads to fewer services for the increasing number of poor people.
Start by browsing and comparing your home loan options at TheFinanceSite. Don’t wait for rate cuts that may or not come from the RBA and your lender. The biggest rate cuts are the ones that borrowers organize for themselves by refinancing, or threatening to refinance, to a cheaper, better product.
Kimberley A is an expert property adviser and professional from North Sydney, Australia. The author loves to share her experience on the topics like home loan interest rates, types of home loans, big lenders, how to get loans approved, etc. so that latest property and home loan updates can be made available for the buyers before making any deal.
A property home loan could be the biggest financial obligation we will ever undertake. So choosing the right you’re vitally important. Tim Bennett explains the fundamentals of mortgages and shows the primary pitfalls to prevent.
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What is home financing?
Mortgages exist to resolve problematic. A lot of people want to buy their particular house, but a home costs thousands of bucks, and also you probably don’t have that variety of cash lying around into the crevices of your sofa. You’d need to work and save your self for a long time to get that much money, as well as in the meantime you can quickly find yourself paying out even more in lease than the cost of the home you wanted to buy.
Therefore to allow individuals get a home before they have been too old to remember why they wanted it originally, we have the home loan system. A mortgage is a form of loan, pure and simple. If house you want to buy costs 0,000, then you might spend ,000 from your savings (that’s labeled as the downpayment), and borrow the residual ,000 from lender.
So if it is that easy – simply a housing loan that you repay in the long run – why most of the fuss and complexity around mortgages? Really, mortgages can be bought in more flavors than Ben & Jerry’s ice cream, rather than these taste great. You’ve got ARMs and balloon mortgages, fixed-rate loans and interest-only loans, connection loans and refis and reverse mortgages.
Learn more about the different forms of mortgages to see which one suits you with Wall Street Survivor’s purchasing your property training course: