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Fixed Home Loan

Fixed Home Loan

If you are looking for the security to have a fixed interest rate for your home loan, irrespective of the rate fluctuation in the market, you are one of those many Australians who want to get relief from the repayments needed to make during the initial phase of your home ownership, you can apply for fixed home loan. 

What is fixed home loan?


The fixed home loan has fixed interest rate for an initial period and the repayment period is also fixed which varies from 6 months to 15 years. Generally you can ‘lock’ your repayment between 1-5 years. It gives stability to the borrowers in the initial stage and after the completion of the fixed term it changes to a variable loan. It also gives you option to apply for another fixed term, after completion of the initial period. The total loan term is for 25 to 30 years. 

What are the pros and cons of fixed interest rate home loans?

The fixed interest rate home loans are very popular in Australia. Some of its advantages and disadvantages are mentioned below: 

Pros
•    It gives you redraw facilities and option of making extra repayments
•    It helps you to plan your budget as you will know exactly how much you need to pay towards your mortgage
•    It gives you a feeling of security and certainty as you will be aware of your upfront expenses
•    If the interest rate in the market falls you can make changes in your payment terms and conditions.

Cons
•    You cannot have lower interest rate of the market rate goes down
•    If you want to make extra payment in addition to the fixed amount, you have to pay an extra charge for it. It means that even if you are financially stable to make extra payment, you have to do it by paying an extra amount or you have to make the fixed minimum payment till the end of the loan term and pay the full interest.
•    It does not have so many flexible features as that of a standard loan
•    You need to make additional payment for any alteration you want to make towards the loan terms and conditions

You need to weigh the pros and cons of fixed home loan mentioned above, according to your affordability, before you apply for it.

Compare more Fixed Rate Home Loans>>

Provider Mortgage Interest Rate $250k (pa) Comparison Rate (pa) Features
Home Value Loan - Owner Occupied 3.65% 3.66% No monthly fees (other fees and charges may apply) Borrowing from $50,000 and up to $7 ... Go to site
Low Rate Home Loan with Offset <80 P&I 3.69% 3.72% Go to site
UHomeLoan SVR Value Offer (P&I) 3.74% 3.74% Go to site
Orange Advantage ($150k+ where LVR <=80% - O/Occ) - Principal & Interest 3.79% 4.11% 100% interest offset - when linked to our Orange Everyday transaction account. Access ... Go to site
Flexible Home Loan with Member Package - Owner Occupied – LVR ≤ 80% – Loan Amount $150k < $400k 3.79% 4.20% Created by Australia’s leading industry super funds, ME Bank stands for a new kind of ... Go to site
Orange Advantage ($150k+ where LVR >80% and <=90% - O/Occ) - Principal & Interest 3.97% 4.29% 100% interest offset - when linked to our Orange Everyday transaction account. Access ... Go to site
Basic Home Loan - Owner Occupied with LVR 80% or less 4.09% 4.11% Created by Australia’s leading industry super funds, ME Bank stands for a new kind of ... Go to site
NAB Base Variable Rate Home Loan - Principal and Interest 4.17% 4.21% For a limited time the Application Fee of $600 for new home loans will be waived. Go to site
NAB Defence Force Variable Home Loan - Principal and Interest 4.45% 4.58% Go to site
Orange Advantage ($150k+ where LVR >90% - O/Occ) - Principal & Interest 4.75% 5.05% 100% interest offset - when linked to our Orange Everyday transaction account. Access ... Go to site
NAB Tailored Home Loan Variable Rate - Principal and Interest 5.24% 5.37% For a limited time the Application Fee of $600 for new home loans will be waived. Go to site
2 Year fixed discount rate Home Loan Privileges Package $150k plus (OO) (fixed) Flexible repayment options Free additional repayments up to $5,000 per year  
Provider Mortgage Interest Rate $250k (pa) Comparison Rate (pa) Features

Compare more home loans >>



 

Home Loan Comparison interest rates in this table are based on a loan amount of $150,000 and a term of 25 years.

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