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Best Interest Rate Mortgage Calculator

Fixed Rate Home Loans

When looking for a Fixed Interest Rate Home Loan, there are two types for you to consider:

  • 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 $285,000 (progressive).

Advantages


  • 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


Disadvantages


  • 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, listed below:


Compare Fixed Rate Home Loans

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