FIXED RATE HOME LOAN
A Fixed Rate Home Loan is as the name suggests, a loan with a fixed interest rate for a specified period of time. The lender agrees to keep the interest rate at an agreed rate which can give surety over repayments. As with anything there are pros and cons with a Fixed Rate Loan.
It is important to note though that there are some limitations, including the amount you can make in additional repayments, normally an offset a/c isn’t available, redraw is also not available during the fixed period and if you do decide to exit the loan during the fixed period, there may be an exit/break cost. This can be costly depending on how interest rates have moved.
Most lenders give additional benefits when structured under a Package. The fixed rates are pricing independently of any RBA interest rate moves so comparing both fixed and variable rates, and understanding the limitations of both is very important.
Before making a decision though, you need to discuss your options with a professional. Following an analysis of your situation, we will discuss the features of the many Loan Types available and match a solution that meets your requirements and objectives – see our Our Process