Cheapest Fixed Rate Loans in town!

The interest rate in a fixed rate loan is fixed for a pre-determined period of time, and many lenders have periods ranging from one year up to ten years.

You can choose to fix your loan, either at settlement, or at a later stage during the loan period, of your choosing.

A fixed rate loan, gives you the security of knowing that you are protected against an interest rate rise for a set period of time, should the variable rate increase.  However, you take the chance of also being locked into a higher interest rate should the variable rate decrease.

The advantage of a fixed loan is that it can allow you to lock into set monthly repayments, which allows you to budget accordingly; however, a fixed loan may often have less flexibility and features than a variable rate loan e.g. restrictions on additional payments.

These days most mortgage lenders allow you to make extra repayments during a fixed mortgage term, and the amount varies from lender to lender.

Investors can also benefit from fixed rate loans by knowing that their investment repayments won't fluctuate during an unstable market. A fixed interest rate provides protection for you investment against rising rates, and enables you to safely work out your budget and cash-flow in line with your investment strategy.

If you’re uncomfortable with fixing the entire mortgage, then a split loan might be best for you.  With a split loan, you can determine which portion you want fixed, and how many years you choose to fix, and have the remainder as a variable, or even a line of credit type product.  This way you still have the safety and peace of mind with the fixed portion, while taking advantage of any future interest rate drops that might occur.

Importantly, everyone’s situation and requirements are different, and you need to choose the right option to suit your own individual situation and budget.

How do you know if a fixed home loan rate is the right choice for your mortgage and your situation?

Before making a decision about your mortgage, and the type of loan product, call us and make an appointment to speak to one of our professionally qualified mortgage brokers. Not all loans suit every borrower, so it's important to know you're choosing the right lender to suit your needs and banking requirements.

We’re happy to chat with you on the phone, and give advice regardless of whether we can help you, so call us now on 02 4952 9910.