If you’re in the market for a variable loan, drug consider these five key points.

Competitive rates and low fees

To ensure you’re getting the best possible rate, shop look at the entire loan package, not just the introductory interest rate. Always ask the bank for a fact sheet that explains not only the loan’s interest rates and fees, but also exactly how much you’ll repay for every dollar you borrow.

Ability to choose your repayment schedule

Making more-frequent mortgage repayments is one of the easiest ways to reduce both the length of your loan and the interest you pay. So if you’re looking for a faster way to pay down your loan, go with a lender that lets you make weekly and fortnightly payments for no extra cost.

Additional repayments with a redraw facility

Some variable-rate loans come with a redraw facility that lets you make additional monthly payments on top of your required mortgage repayment. These extra payments reduce the amount of interest you pay on your loan while allowing you to ‘redraw’ the funds should the need arise.

Ability to access an offset account

This can help you save on interest while significantly reducing the term of your loan. Be sure to find a loan that offers a 100% offset account, which means you earn the same amount of interest in your offset account as you pay on your loan. An offset account works like a regular transaction account and usually comes with the use of an ATM or credit card for easy access to your money.

Personal relationship manager

To simplify the process, some banks provide you with a personal relationship manager who can give you expert advice and guidance at every step of the way, including:

• Taking you through the entire loan application and settlement process
• Helping you collect your paperwork and supporting documentation
• Assisting you in making changes to your existing home loan.

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