Fixed Rate Home Loans
A fixed rate home loan is a loan that is fixed at a certain rate for a period of time. Generally speaking most banks offer fixed rate home loans over 1,2,3,4 and 5 years. Some lenders offer 7,10 and 15 year fixed rate home loans. With a fixed rate home loan, generally after the fixed rate period ends, your home loan will revert to the standard variable. You can re fix your home loan again, at that stage, but the bank or lender may charge a loan modification fee.
You have a guaranteed interest rate for the period of the fixed rate term.
You may be able to manage your budget better knowing your repayments for the fixed rate home loan term.
With most banks, fixed rate home loans can be packaged under a banks professional package, saving you fees, and some banks offer a cheaper fixed interest rate under their professional package.
With most fixed rate home loans you are limited how much extra you can pay off your loan during the fixed rate period.
Fixed rate home loans can be expensive if you pay out your home loan during the fixed rate term (eg. Sell your home)
Most fixed rate home loans don't have the ability to have an offset account.
Home loan terms from 5 to 40 years (Depending on the bank or lenders credit policy)
Principle and interest repayments are available
Interest only repayments may be available.
