Resources: Home Loan Types
Fixed Rate Home Loans
With a fixed rate loan your interest rate and repayments are fixed for a set period, usually between one and five years. Most fixed loans will automatically default to a variable loan at the end of the term, but can roll over to another fixed term.
Advantages
- When rates are rising it is guaranteed that your interest rate will not go up.
- You know how much your repayments will be for the fixed period of the loan.
Disadvantages
- In period of decreasing interest rates your interest rate will not drop during the fixed term.
- There can be penalties for changing from a fixed rate loan to a variable, or for changing lenders, before the fixed term ends.
Let a ratesonline broker contact you about Fixed Rate Home Loan.
