Home Buyers Agents

Cohen Handler Buyers Agent Melbourne

Address: 1501/52 Park St, South Melbourne VIC 3205

Phone: 1300 420 160

When you have secured your home loan - why not consider using a buyers agent to secure you the best Melbourne home at the right price - it can save you money.

How Can A First Time Buyer Benefit From A Fixed Rate Home Loan Using A Buyers Agent

The home loan process can be complex and daunting for a first time buyer and this is because there is so much to go through. Did you know that there are 14 different kinds of home loans to choose from? One of the types of home loans that you may have heard of are fixed rate home loans, and you may wonder how they could benefit you.

If you want to know how a first time buyer can benefit from a fixed rate home loan; read on.

What are fixed rate home loans?

Before you can understand how they can benefit you and other first time buyers, you need to understand what they are and how they work.

The amount of interest that you pay each month will be set from the beginning of the loan until the end, so you will know the exact amount that you will need to repay - and for how long, too. Although you may think that all home loans will be set from start to finish, many of them don't actually have a set interest rate!

That's what makes this kind of home loan so great. You will know exactly what you need to pay and when you need to pay it – as well as how long you need to keep up those repayments until you have cleared what you owe (along with the interest).

Believe it or not, some of the other home loans don't have this assurance - and you could end up confused as to what you are paying each month.

Why can it be good to have a set rate?

It can be very good to have the amount of money that you pay each month be the same for the duration of the home loan. Also, if the market rates (which are the rates that determine the interest rate on other kinds of loans) increase, your interest will remain the same.

If you know you can pay the set amount each month, then you have no issue - because your interest rate can't unexpectedly double.

Why can it be bad to have a set rate?

With variable rate home loans, the amount of interest changes with the market rates, so if the market's rates rise, so will their interest rate. However, you could be missing out on a lower interest rate if the market's rates drop. So, you may know what you pay and you may also know that you can pay it, but sometimes the rates will drop very low and you will miss out in these cases.