This loan has a set interest rate for a period of time. This means you know exactly what your repayments will be for your fixed rate term.
If you are unsure about whether to take a fixed or variable rate - you should consider a Split Loan.
Advantages
- Fixing the interest rate for a period of time insures against future rate rises.
- It is easy to budget for the same regular repayment each month.
Disadvantages
- If interest rates fall you may pay more for your loan than borrowers on variable rates.
- Most lending institutions penalized you for making additional repayments.
- You may be penalized if you pay off your home loan before the due date.
Basic Home LoanLike to know more about the home loan process then review our Guide to Home Loans.
Standard Variable Rate Home Loan
Line of Credit
Professional Home Loan Package
Split Rate Home Loan
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