If you are currently on a variable rate loan and are thinking of refinancing to a fixed rate loan, here’s a fact sheet of what you’ll need to know.
How does it work?
With a fixed rate loan, your interest rate is locked in for a specific period (usually between 1 - 5 years).
What are the Pros and Cons?
Pros
- Helps you budget becuase you know exactly how much you will be paying
- Your loan repayments remain fixed regardless of rising interest rates.
- Some fixed rate loans today offer home loan features such as extra repayments and redraw facilties.
Cons
- The fixed rate means you will not benefit from falling interest rates
- Some fixed rate loans will incur fees if you make additional repayments
- You may incur fees if you terminate the fixed period early
What are the current fixed rates?
Fixed rates will often vary between lenders, to find out what the current fixed rates are ask your local mortgage broker by completing our brief online enquiry. They can help you determine if a fixed rate option is right for you, do all the paperwork and even negotiate a more personalised fixed rate loan package on your behalf.
For more information on home finance in your best interest, simply complete a contact form and we will have a home finance broker in contact with you within two business hours. Alternatively, call us at any time on 13LOAN or for overseas callers +61 2 90188417.
