About fixed rate home loans
One of the main advantages of a fixed rate mortgage is the peace of mind that comes with it. You can’t beat the predictability of a fixed rate home loan if knowing your monthly repayment amount is important to you. When it comes to choosing the right one, we have two options for you to consider: Fixed rate home loans are available for principal and interest loans as well as interest only loans. They are usually less flexibility together with potentially harsh break costs if you need to make changes to the original loan prior to the fixed rate expiry period. Consider a combination fixed and variable loan for more flexibility & freedom (split loan). Fixed home loan rates are generally higher than variable rate home loans except in negative growth economic cycles. Most banks and lenders permit some flexibility in receiving additional payments to approximately $20,000.00 per year. Well versed mortgage brokers will find a lender that meets your expectations and requirements.
Fixed interest rate home loan
This loan is available for between 1 and 5 years. At the end of the fixed period, you have the option to refix for a new term or have the loan revert back to the standard variable interest rate. During the fixed period the mortgage repayments and interest rate remain constant. Extra repayments are normally restricted on this type of loan.
Progressive Fixed Interest
This home loan is similar to a standard fixed rate home loan, with one important difference:
Advantages
Disadvantages
How do home loan interest rates work?
Banks & mortgage providers make their money out of interest & fees. However, they are all impacted & controlled directly & indirectly by regulators and global rating agencies capping the level of risk they can bare. Banks & home loan providers each have their own commercial goals & preferred market segments to service & specialise in.