Fixed Rate Home Loans

With a fixed rate loan, you pay the same interest rate for a certain number of years (usually 1-5 years). Even if the Reserve Bank increases the official interest rate, your rate remains the same.

Pros — What’s good about a fixed rate loan?

• It’s low risk. Even if the Reserve Bank puts official rates up, your rate stays the same.
• It’s predictable. You know exactly how much you’ll be spending on your mortgage, each month, so budgeting for other expenses is far easier

Cons - What's bad about a fixed rate loan?

• It doesn’t drop. If the Reserve Bank lowers official rates, your rate remains the same. So it’s possible you’ll end up paying more than you would on a variable rate.
• Cancellation penalties. There are usually penalties for ending the loan before the fixed rate period ends.
• It’s inflexible. You usually can’t use it as a redraw facility or make extra payments.

Still have questions about fixed rate home loans?

If you have any questions about fixed rate home loans that aren’t covered above (in fact, even if they are!), please feel free to give us a call on 1300 883 292 or enquire below, and we’ll call you.