Fixed Rate Home Loans
Fixed rate home loans provide you with certainty over your repayments for a pre-determined period of time. Your Loan Market mortgage broker will help you determine what length your fixed term should be, based on your financial situation and your personal feelings.
attaining Interest Rate Certainty
To attain interest rate certainty by securing a fixed rate home loan or talk to a Loan Market mortgage broker about the home finance options that are in your best interest, call us on 13 LOAN ( +61 2 9249 3739) or email us the form on this page and we will contact you within 2 business hours.
Unlike variable rate home loans, fixed rate home loans generally have few additional features. In particular, you may not be able to make additional repayments or pay your loan out early without hefty penalties. Your Loan Market mortgage broker will confirm what is available for your specific loan.
At the end of your fixed-rate period, your home loan will generally revert to the lender’s standard variable rate, unless you have negotiated something different.
How do fixed rates work?
Fixed rate home loans lock in a specific interest rate for a term ranging from six months to 10 years. Currently about one fifth of all home loans in Australian are fixed and in the current market this figure is rising. You should however check with your Loan Market mortgage broker before making a decision to fix.
When Should I fix versus going variable?
While variable interest rates are influenced by the Reserve Bank, fixed rates are quite different. Fixed rate pricing is driven by those who invest in the fixed rate wholesale markets. Right now, look for when fixed interest rates drop below 6 per cent before considering fixing, unless you require certainty of repayments now. If you want to develop fixed rate expertise, keep an eye on the 90-day bank bill swap rate: when it drops and lenders start following suit, wait for the market to stabilise and then look at fixing the rate on your home loan.
secure a fixed rate home loan
To secure a fixed rate home loan or to get an assessment of the fixed term that is in your best interest, talk to your local Loan Market mortgage broker and we will return your enquiry within 2 business hours. Or call us at any time on 13 LOAN or direct on +61 2 9249 3739.
