How the structures differ

A loan can have a fixed rate for an agreed period or a variable rate that may change. Those descriptions are only a starting point: the terms and features of the actual loan still matter.

Questions about flexibility

Ask about extra repayments, access to funds, and what happens if your plans change during a fixed period. Compare the conditions in writing rather than assuming that a feature is included.

Look at the full cost

Compare the amount borrowed and the term on the same basis. Include fees and ask what happens when any introductory or fixed period ends. The lowest initial payment is not the whole picture.

KEY CONSIDERATIONS

Keep the whole picture in view.

  • Identify your goal before comparing a scenario.
  • Ask which assumptions and costs are included.
  • Seek qualified advice for your own circumstances.

General educational demo, not personal financial advice. Information provided on this portfolio demonstration website is general in nature and does not take into account your personal objectives, financial situation or needs. Any rates, fees, calculations, case studies and scenarios shown are fictional or illustrative only and do not constitute financial advice, a credit offer or approval.

Further general reading: ASIC Moneysmart: choosing a home loan and understanding mortgage estimates. Oakmont is not affiliated with ASIC.

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