Fixed Rate Home Loans
When looking for a Fixed Interest Rate Home Loan, there are two types for you to
Fixed Interest Rate mortgage
Progressive Fixed Interest Rate mortgage
A Fixed interest rate home loan is available for between 1 and
5 years. At the end of the fixed period, you have the option to refix for a new
term or to revert back to the standard variable interest rate. During the fixed
period the mortgage repayments and interest rate remain constant. Extra
repayments are normally not permitted on this type of loan.
A Progressive Fixed interest rate home loan is similar to a
standard fixed rate home loan, with the exception that it has the ability to
make extra mortgage repayments without incurring a penalty fee. Progressive
Fixed rate loans generally offer more flexibility and include additional
features such as a redraw facility and an offset account.
How does an offset account work on a Progressive Fixed Rate Loan?
If you have a $300,000 loan fixed at 6.4% p.a. for 3 years and an offset account
containing $15,000, your interest will be charged at 6.4% p.a. (fixed) on only
Budgeting your finances is easier, as your home loan repayments remain
consistant even if there is an interest rate rise
Reduce the risk of defaulting on your home loan in the event the variable
interest rate increases and mortgage repayments increase
Additional mortgage repayments permitted up to 5% in a 12 month period for most
Fixed mortgages or up to $20,000 on Progressive Fixed mortgages
Some fixed home loans have offset accounts and redraw facilities
The fixed home loan interest rate, at times, can be higher than the variable
home loan interest rate.
If interest rates fall, the home loan repayment will not reduce as your
repayment amount is fixed.
Fees may apply if additional home loan repayments of more than 5% are made in a
12 month period.
Fixed Interest Rate Home Loans
Mortgage House offers an extensive range of Fixed Interest Rate Home Loans,
Compare Fixed Rate Home Loans
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