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Best Fixed Rate Home Loan Products

Becoming a homeowner is a special and exciting occasion - it is also a time that comes with many important decisions. Choosing the right home loan can impact your financial wellbeing for years to come, so it is important to select the most suitable option for your personal circumstances.

If you are looking for a home loan that provides you with certainty as to how much you will pay towards your mortgage each month, then you should consider a fixed rate home loan.

As the name suggests, when you sign up for a fixed rate home loan the interest will be set at a particular rate. This interest rate will continue for an agreed period of time, ranging from one to five years.

Securing yourself a great rate

The Reserve Bank of Australia (RBA) review the official cash rate once a month and as a result variable interest rates can change throughout the year. Fixed rate home loans provide home buyers a way to secure the best fixed interest rate available to them at the time.

By securing a fixed interest rate you’ll know exactly what your monthly loan repayments will be and these payments won’t be affected by RBA rate fluctuations.

It’s all about timing

One of the key factors to getting a great deal on your fixed rate home loan is timing. This means securing a home loan when interest rates are low.

Doing this will enable you to keep paying the same low rate over a period of time, even if interest rates begin to increase. And the good news is that we are currently seeing historically low fixed interest rates, so now is a great time to consider this option if you think it is right for your circumstances.

Advantages of using a fixed loan

A great advantage of using a fixed rate home loan is that it allows people living on a budget to calculate how much they will be putting away for repayments each month. This means that they can monitor exactly how much all of their household outgoings will be with certainty, and manage their finances accordingly.

However, if you are concerned about locking yourself into one rate for a number of years another benefit to a fixed rate home loan is that you can secure a portion of the loan on the fixed rate and keep the other portion of the loan on a variable rate.

For example, if you had a mortgage of $300,000, you could choose to secure $200,000 of the loan at a fixed rate and keep the remaining $100,000 at a variable rate.

This strategy gives you peace of mind knowing exactly what your repayments are for the fixed portion, and also gives you the added advantages available on variable loans e.g. additional repayments.

The features on our loans vary, so first speak to your resi Loan Specialist about your particular needs and they will then tailor the loan to suit you.
After your fixed term has ended, you can choose from the following three options:

  • re-fix your loan to another fixed rate term
  • refinance your loan
  • or switch to a variable rate loan

So if you're looking to secure yourself the best fixed home loan rate then talk to a resi Loan Specialist today.