follow us 
Planning your next holiday? Find an ATAS accredited agent here » 
Participant Zone
Accredited ATAS participants click here for access to the secure business support area.
Accredited ATAS participants click here for access to the secure business support area.
AFTA@Work Newsletter - Qantas Credit Union
There is no better time than the present to review your lending needs and assess your mortgage options. From year to year your needs can change, so ask yourself whether your loan and its features and benefits are still working for you, whether you have achieved your objectives and if you could improve on them.
In the currently low interest rate market, many of our members are asking whether now is the right time to fix or not, or what other options are available. Below are some highlights of key features on different home loan products you could consider when deciding what type of loan is right for you.
With a variable mortgage you will have the opportunity to take advantage of cuts in interest rates. If you believe the rates will stay low for a good period of time, this could save you money now and over the term of your loan. You may also have the option of making extra loan repayments if you decide to take out a variable rate mortgage – this feature option isn’t available on all fixed rate products. You may also avoid break free fees if you chose a variable rate mortgage and change or pay off your loan early e.g. if you sell your home.
If you’re more comfortable with the security of knowing what your repayments will be each month for a set period of time, then a fixed rate mortgage product might better suit your needs.
Repayment security and the ability to plan your budget are among the top reasons why people consider fixing their mortgage. When interest rate movements are tough to predict, removing the uncertainty is a major benefit of fixing your mortgage.
You could hedge your bets. Some people chose to fix a portion of their loan to cushion themselves against interest rates rises. On the flip side, the remaining portion of the mortgage remains variable and gives people the opportunity to take advantage of interest rate cuts, and some of the features of the of a variable mortgage.
Please see below the benefits and potential drawbacks of different loan products at a glance.
| loan type | description | benefits | drawbacks |
|---|---|---|---|
| Variable Rate | The interest rate is variable and can change. |
|
|
| Fixed Rate | The interest rate is fixed for a set term and usually reverts to a variable rate on term expiry. |
| Check for any restrictions including:
|
| Split Rate | A combination of part fixed and part variable rate loans |
| Check for any restrictions including:
|
At Qantas Credit Union we offer a great range of home loan products and options. Talk to us about how we can help you get a great deal on your home loan or range of banking services on
1300 747 747 or www.qantascu.com.au
The information in this article is of a general nature and does not constitute as advice in relation to any investment of purchase. It has been produced without taking into consideration your personal financial circumstances, objectives or needs. Prior to making any decision you should conduct your own investigation and analysis of any benefits or costs associated with such. You should seek your own independent legal and financial advice. Normal lending criteria applied. Terms and conditions apply and are available on request. Qantas Staff Credit Union Limited trading as Qantas Credit Union ABN 53 087 650 557, AFSL/Australian Credit Licence 238305.
*source: https://www.moneysmart.gov.au/borrowing-and-credit/home-loans/fixed-vs-variable-home-loans#gain