A fixed interest rate loan allows you to fix the interest rate for a period of time, generally between one and five years.
Some home loans have fixed terms of up to 12 years. After the fixed term the loan usually reverts to the standard variable rate on offer at that time, or you may choose to refix the loan for another term.
You may consider a fixed rate loan if:
- You are on a tight budget and need certainty of the repayment amount each month
- You are an investor looking to achieve a fixed return on your investment
- You believe interest rates may rise significantly in the future and can’t afford increased repayments
If you decide to sell your home or refinance your loan whilst on a fixed rate term you may incur a penalty.
Are you ready to talk or need help making the right decision?
Getting the right advice is so important, so give us a call on (08) 8300 8300 or contact us online to start your home loan journey with Bernie Lewis.