With January in full swing, most workers are back on deck and ready to tackle the year ahead. However, the Omicron outbreak has continued to...Read more
Most variable interest home loans don’t have a maximum interest rate (some going up to 25%). Luckily, most lenders will often cap their interest rates. An interest rate cap limits how high your interest rate can rise on a variable rate mortgage. Caps are structured to help limit incremental increases in the rate of a loan. An interest rate cap helps benefit borrowers in a rising interest rate environment, making the product more financially viable and attractive for customers. Interest rate caps also give customers protection against dramatic rate increases, providing a threshold for maximum interest rate costs. The maximum interest rate of a variable home loan depends on how your lender customises and structures the interest rate cap.