Fixed Rate Loan

When Should You Apply for a Fixed Rate Loan?

The first thing you need to determine is what type of loan is right for you? The array of mortgages available helps a good Mortgage Specialist tailor a package to suit your needs. Here are just some of the options.

Fixed-rate mortgages

A fixed rate loan is as simple as it sounds. Part or all of the loans interest rate will be fixed at a pre-determined interest rate for a pre-determined period of time.

Many of the lenders we deal with offer fixed rate loans from 1 to 5 years.

Fixed rate loans are ideal when:

  1. You want the security of a fixed repayment for a period of time
  2. You feel that you may not be able to make extra repayments over the short term

Variable rate mortgages

Repayments can change during the life of a variable-rate loan, so you may pay more or less as interest rates rise or fall. If you’re fairly sure that rates are set to fall, this is a good option.

Split home loan (fixed and variable)

You can choose to have part of your loan at a fixed rate and the other part can be at a variable interest rate. If rates do fall, the interest will go down on the variable part of your loan, but you aren’t taking as big a risk should rates rise.


Applying for a Fixed Rate Loan

Applying for a fixed rate loan is easy. You can discuss this with your Mortgage Specialist at the time of your loan application, or if you’re an existing mortgage holder and you want to convert from a variable rate to a fixed rate simply call your Mortgage Specialist and they’ll organize it for you.

Its important to understand all the conditions around a fixed rate loan, such as extra repayments and early discharge fees. Then as long as you are comfortable with these conditions and it fits in with your needs, a fixed rate loan can make your life more comfortable.

If you think that this type of home loan will be ideal for you, but cannot make a final decision, call us to speak with one of our expert Mortgage Specialists.

What’s next?

If you want to get a personal individual assessment and discuss what your options are? Contact us on 1300 CAP ONE (227 663) or fill in our Free Assessment Form.

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