Fixed Rate Loans are ideal if you are:
A first home buyer, a home owner or investor wanted security from changing interest rates
A home owner or property investor seeking to combine a fixed and variable loan together
Looking for a better deal or consolidating expensive debt
Fixed Rate Loans
A Fixed Rate Home Loan gives you peace of mind with the security of fixed loan repayments for the fixed term of your loan.
At the end of the fixed rate, the loan converts to a variable rate.
You have the option to re-fix your loan at the end of the fixed rate period. Some lenders charge a fee to do this, and others re-fix at no cost.
Fixed Rate terms are available in with fixed terms from 1 – 15 years on a total loan term of 30 years. The loan will revert to the variable rate if you choose not to refix once the fixed term expires. The majority of lenders offer 1-5 year fixed rate terms.
The majority of lenders do not fix the interest rate until settlement.
Fixed Rates can change between the time of application and the settlement of the loan. However, most lenders offer a rate lock for their fixed rates. It is an additional fee to “lock in” the rate at the time of application.
Most lenders will lock the interest rate from 60 days to 90 days, but it is important to find out the conditions of the rate lock and to it make sure. At times when variable interest rates are increasing the fixed rates increase too.
It can be a wise move to lock the interest rate on the date of application.