A fixed rate loan allows you to enjoy a locked-in interest rate for a set period of time, often up to five years if you qualify. A fixed rate home loan can be advantageous if variable interest rates rise, A fixed rate home loan can be good if you want to carefully budget your repayment - knowing exactly how much you need to repay means you can plan accordingly which gives you a degree of certainty and security.
· Interest Fixed at a Set rate
· Choose to Fix from 1,2,3 ,5, 7, 10,15 years ( depending on lenders)
· Would not affect monthly repayment if interest rate rises
· Ability to set Budgets
Points to Consider:
· Break fees applies if you choose to exit the fixed period prematurely
· Slightly higher interest rate then the standard ( at time of fixing)
· Offset Accounts usually not available
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