Fixed Rate Loan in Sydney, Australia for Hedge Against Expected Interest Rate Hikes

A fixed rate loan gives you the assurance of knowing that you are protected from fluctuations in the interest rate. Through this, you will be able to know how much repayments you have to pay along with how many repayments left.

Fixed Rates:

Fixed rate loan offers both pros & cons, your decision should depend on your financial lifestyle and goals and whether or not your current loan situation is working for you financially.

Using this type of mortgage is that home buyers know almost to the penny what their monthly home payment will be over the course of the loan.
Fixing your loan during times of very low interest rates can give you benefits because you can retain a low rate for a fixed term even if the rates rise steeply.
If interest rates in general drop, the borrower may end up paying more than others are paying who are locked in at the lower rate. The only real way to adjust this type of mortgage is to refinance, which can be costly to the homeowner. In some cases, however, a refinance is a very good idea and buyers should look into it.
This type of mortgage is difficult to get than an adaptable rate mortgage for some buyers who have less than outstanding credit.
One of the last drawbacks of fixed-rate mortgages is the fact that you may be hit with penalty fees if you want to progress your monthly repayments at any stage.

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Talk to our adviser to get fixed rate advice

If you are unsure about whether to lock down your interest rate or if you’re interested to know fixed home loan rates in Australia suitability as per your circumstances, you can give us a call us on 1300 YFA BROKER or you can visit us online at info@yourfinanceadviser.com.au.

Home Loan Type

FAQS

What is a fixed home loan rate? 

A fixed home loan rate is the interest rate that is set for a fixed amount of time, usually between one and 15 years. In this case, the repayment amount is fixed. 

What is the difference between fixed, variable and split rates?

In the fixed rates you know exactly the repayment amount for the duration of the fixed term whereas, in the variable rate, the interest rate may, or will change over the course of your loan terms. Split rates are where you can fix a set portion of your loan and leave the rest on the variable rates.

Which loan is a better variable or fixed?

For most borrowers, fixed rates are more beneficial as the repayment amount is fixed. A variable rate can save money for you when the interest rate is low whereas it can also cost more if the interest rate increases. So, it all depends on your needs.