How do interest rate changes work with variable home loans?

We committed to a variable homeloan with National Australia Bank, but now I'm hearing that they're dropping their interest rate by 0.2 percent. Do we have to apply for the change to reduce our monthly repayments or does it happen automatically?


Thanks we're new to all this and don't know much about how it works.|||Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every month%26lt;!--therefore it is always a good idea to keep an eye on what the rates are doing. If interest rates should rise, so will your monthly payments and again, if interest rates were to fall, so would the amount you would have to pay.





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Monthly repayments made on your mortgage and the amount that was borrowed, is determined by current mortgage interest rates. Different--%26gt;companies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.