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.

Benefits:

·          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