Home Loan Variable: 5.94% (5.95%*) • Home Loan Fixed: 5.79% (6.39%*) • Fixed: 5.79% (6.39%*) • Variable: 5.94% (5.95%*) • Investment IO: 6.14% (6.58%*) • Investment PI: 5.99% (6.61%*)
FIXED HOME LOANS
A fixed rate loan, as opposed to the Variable Rate Home Loan, is one where the rate is fixed for a defined time period. Not as popular the variable product, Fixed Rate loans still offer a range of features that make the loan type worthy of consideration, particularly if you’re looking for certainty in the first couple of years of your mortgage.
The most significant disadvantages of the fixed rate products is that they usually (although there are exceptions) do not allow extra repayments or provide a redraw facility. So, with the certainty comes some limitations that permit you to pay down your loan, or allow you to access funds, over that fixed period.
Disadvantages of a Fixed Rate Home Loan
Other than the certainty of a fixed and known payment each month, consider the following disadvantages.
- You will not benefit from falling Interest Rates when announced by the RBA, and passed onto borrowers by the banks.
- You are also usually fixed for a set term of a number of years. Once you’re locked into a fixed rate product it’s often difficult to break that arrangement. This presents problems if you would like to refinance or sell your home.
- Restrictions may apply when making additional payments, or a fee may be applied.
If you’re leaning towards a fixed rate product but you would like to take advantage of features made available via the Variable Rate home loan, you might want to consider a Split Rate Home Loan.
Sample Fixed Rate Products
The following is a small sample of available fixed rate products. Please contact us or refer to our product comparison pages to be paired with an appropriate collection of suitable home loan products.
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The comparison rate is calculated on a secured loan of $150,000 with a term of 25 years with monthly principal and interest payments. WARNING: This comparison rate is true only for examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Important Information: Applications are subject to credit approval. Full terms and conditions will be included in our loan offer. Fees and charges are payable. Interest rates are subject to change. Offer does not apply to internal refinances and is not transferable between loans. As this advice has been prepared without considering your objectives, financial situation or needs, you should consider its appropriateness to your circumstances before acting on the advice.
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