Category: Repayments

December 15, 2019

Transparent Variable Rate Home Loans – It Is Possible

Deciding which home loan to choose can be tricky business, particularly when it comes to the stability of a fixed-rate or the flexibility of a variable rate.

Variable rates have traditionally been attractive due to their initially low rate, but how do you know if that rate will remain low? Banks have significant control in the setting of loan rates, and there is little transparency surrounding how these rates are calculated. 

This week, the House of Representatives Standing Committee on Economics has weighed into the discussion of offering tracker mortgages through the four major Australian banks.

Tracker mortgages have rates which fluctuate in line with the official cash rate, so there is transparency regarding how the rate is calculated and fluctuates. However, according to bank executives, it wouldn’t all be good news if this type of loan is introduced.

Brian Hartzer, chief executive of Westpac, and NAB chief executive, Andrew Thorburn, stood opposed. They said that excessive premiums would be attached to tracker mortgages due to the high risk associated with them for the banks. This, in turn, would be unappealing for consumers, who generally opt for a fixed rate on their loan if they are after more security. Mr Hartzer went on to say that if banks offered loans with that much risk, they would be in serious trouble if the cost of funds spiked.

On the other hand, ANZ Chief Executive Shayne Elliott and Commonwealth Bank of Australia Chief Executive and Managing Director Ian Narev, were open to the idea – despite the high risk. Both agreed, however, that they wouldn’t be certain there would be much demand for tracker mortgages due to the high premiums.

They also wondered if the introduction of another loan option would make it more confusing for the consumer.

Finding the best home loan rates can be confusing, especially when you consider the many options and the general lack of transparency associated with many banks and mortgage brokers. Joust removes the confusion and provides unrivaled transparency, which makes the decision process much clearer for consumers.

We bring the banks to you with their best offer and the most relevant information on the table, which means no hidden fees and far less confusion. Providing a marketplace where you and the banks are able to see other offerings provides full transparency, which is often difficult to find when purchasing a home loan. This process is what makes Joust the simplest and most competitive platform to use when shopping for your mortgage.

Find out how Joust works and let the banks come to you with their mortgage offer.


What Would Lower Home Loan Repayments Mean to You?

As our lives progress, we enjoy many milestones along the way. The first car, first holiday, marriage, kids…it’s a journey that will never be forgotten.

image of a house to outline how what lower home loan repayments could mean to you

So, when it comes time to buy a new home, it is an incredibly exciting time for all involved.

But, when you’re greeted with the bank’s interest rate offer for your home loan, it can leave a lot to be desired. If you have been presented with a high-interest rate, the thought of spending the next couple of decades coping with daunting monthly mortgage repayments can cast a dark cloud over an otherwise happy time.

Equally dismaying is if you already have a mortgage, but it’s no longer working out for you. Maybe you had a great starting interest rate, but the honeymoon period ran out and the interest rate is now much higher. Or, perhaps you were drawn in by alluring features and confusing jargon. What are you to do? How can you refinance your home loan in order to achieve the best outcome?

By using the innovative Joust platform, you can test the market and make banks come to you with a more competitive home loan interest rate.

By connecting our panel of lenders with each other on the dynamic Joust platform, this increases competitive tension and banks fight for you with some of their lowest home loan interest rates. And, as our platform is online and free, you can sit back and relax as you watch lenders compete for your home loan in real-time. You can obtain a low home loan interest rate without the hassle of meetings and negotiations with banks and mortgage brokers. As a result, the savings you could achieve can be substantial – life-changing for some.

So, what could you do with the savings from a lower monthly mortgage repayment?

Why not take your family away on holiday? If you’re saving money by having a lower interest rate, you can enjoy a trip up the Murray River, explore the scenic peninsulas, have a weekend away interstate, or save up and take a trip overseas that you’ll remember forever.

You might just want to put your savings towards perfecting your home. Renovate and create the kitchen of your dreams with state of the art appliances. Landscape your backyard and become a weekend BBQ expert for your friends and family. Build more space for your growing family. The possibilities are endless.

A home loan is a big investment. As such, it’s important that you are as happy with the arrangement as possible. At Joust, we empower you to find some of the best home loan rates available. Joust now and discover how easy it is.