Fixed Rate Home Loans
Fixed Rate Home Loans offer you steady repayments each month. If you are on a fixed income, it's nice to know that your repayments won't be changing. This makes household budgeting easier.
At the end of the fixed period, you have the choice of switching to the standard variable rate home loan or another loan product.
When is it a Good Idea to Fix the Interest Rate on a Home Loan?
Home loan interest rates are tied into the economic cycle. Fixed Rate Home Loans are the most cost effective option for you if the interest rate cycle has bottomed and looks like increasing.
It is best to do some research on the current economic news and trends to get an idea of where rates could be heading.
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You are our customer, not the banks. We work harder to get the best deal for you.
Pros and Cons of a Fixed Rate Home Loan
Advantages of a Fixed Rate Home Loan
- Your repayments will not change during the selected fixed term, making it easier to budget.
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If you fix your rate at the right time, you can pay less interest than a variable rate loan. Predicting when the interest rate cycle has bottomed, however, can be difficult, even for economists.
Why would I not choose a Fixed Rate Home Loan?
• If interest rates fall you may pay more for your loan than borrowers on variable rates
• Capped extra repayments - so it might cost money to pay your loan off faster.
• If you pay off your home loan before the end of the term, there may be extra costs.
• Limited features - some of the added extras you pay for in other loans are omitted to keep costs down.
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Some of the other Home Loan Products you might like to learn more about from this site include:
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