Chameleon - Freedom Home Loan 60

Fixed rate mortgages are what they sound like – a loan with a fixed mortgage rate for a fixed period of time. They can help you avoid the fluctuations of a variable interest rate, which can be good for budgeting and for those looking for security in their repayment amounts. To a lot of people, fixed rate mortgages can help them reduce the risk of defaulting on their loan. Like all fixed rate loans, our 1 Year Fixed Mortgage will revert back to a standard variable interest rate loan, or you can refix it for a new term. Fixed rate mortgages can often have a higher interest rate at times than a variable rate, but you can escape any rises if the variable rate rises during your fixed rate term.

Fixing mortgage payments for 1 year gives you the security of knowing exactly what your repayments will be for 12 months. And finding out exactly how much those repayments will be is simple, even before you sign on the dotted line. The repayments calculator above can give you all the information you need to know exactly what your repayments will be, whether you choose to make payments weekly, fortnightly or monthly. But, our calculators can do much more. They can give you a guide as to how much you may be able to borrow, based on your income and monthly expenses. They can also give you an indication of how much stamp duty you may pay when buying a new home. And they can also help with your budgeting, to give you an indication of how much money you may have left at the end of the month to put towards your 1 Year Fixed Mortgage.

Most fixed rate mortgages will only be fixed for a short period of time compared to the 30-year period the usual variable rate loans can run for. Most lenders will offer fixed rate loans for up to 10 years. Variable loans also have fixed terms. Our 1 Year Fixed Mortgage will revert to a standard variable rate after 1 year, but you can also extend or refix your mortgage for another agreed term if you wish. You can also look at other options such as a split loan, which allows you to split your loan into both a variable rate and a fixed interest rate term.

Lender’s Mortgage Insurance, as the name states, protects the Lender not you as the borrower. Lender’s Mortgage Insurance (LMI) is a once off fee that normally applies to loans where the customer is borrowing more than 80% of the purchase price. LMI is scaled depending on the percentage you need to borrow (between 80 – 100%) and the amount of the loan (ie, $650,000). LMI can start from $800 and range up to nearly 4% of the loan amount. You have two options to pay this fee.

1. You can pay it upfront on settlement of the loan.
2. Some lenders allow you to capitalise the cost of your LMI, meaning that they will add this figure to your loan amount. For example, if you are borrowing $650,000, your LMI may work out to be $7000. You would actually increase your loan amount to now borrow $657,000 ($650,000 + $7,000).

You can borrow a minimum of $500,000 with this mortgage, and there is no maximum amount. It has a Loan-To-Value Ratio (LVR) of 80%, which means you can borrow up to 80% of the value of the property you are looking to purchase. One of our mortgage calculators can give you an indication of how much you can borrow, even before you have applied for a loan. Simply enter your information into our borrowing calculator, and we will provide you with a figure that you can use as a guide going forward. If you are looking for a higher figure, contact our expert lenders and they will work to help you achieve your property goals.