Fixed Rate Home Loans Melbourne
Rates and repayments on fixed rate loans are fixed over a specified period which makes budgeting simple. If rates rise you benefit but if rates fall, you will miss out on the lower rate. Additional repayments may be restricted or not permitted depending on the loan conditions.
Fixed rate home loans are a good way to insure you against a rising interest rate. Also it provides you with certainty; you know your repayments won’t change during the period of time the loan has been fixed. Most lenders offer the option of fixing their home loan rate for 1-5 years.
Some benefits of a fixed rate:
• Peace of mind knowing exactly what your repayments will be for a selected period of time (up to 15 years)
• Can be principle and interest or interest only
• Often lower than standard variable rates on offer
• Able to make extra repayments if you choose to for most fixed rate loans
Fixed home loans do sometimes come with features but they are less common and there are fewer options than with a variable rate. There fore, should you wish to make extra repayments for example you may have to pay a fee. Interest rates for fixed home loans are traditionally comparable to the current variable rate, although at the moment fixed rates are lower than variable rates, so you can save money right now as well as locking in security for the next few years.
The decision over whether to fix your interest rate is a personal choice and really depends on your circumstances, how much flexibility you require, versus how much security you want, and whether you think interest rates are on the way up, or down. It’s a good idea to talk to a mortgage broker to see what option is best for you. Why use a Your Local Finance mortgage broker?A Your Local Finance mortgage broker takes the stress out of applying for a mortgage by doing all the work for you. Whether it’s processing the paperwork, researching the market for appropriate mortgage products, following up your application progress, or providing support and understanding throughout the process, the services your mortgage broker Melbourne provides are invaluable and will ensure a positive, stress-free mortgage acquisition process.
To get the latest fixed rates contact your mortgage broker Melbourne today on
or complete the form on line. We are ready to assist you choose the right home loan.