Fixed Term Home Loan with Fixed Interest Rate

This loan has a set interest rate for a period of time. This means you know exactly what your repayments will be for your fixed rate term.

If you are unsure about whether to take a fixed or variable rate - you should consider a Split Loan.

Advantages

Fixing the interest rate for a period of time insures against future rate rises.
It is easy to budget for the same regular repayment each month.

Disadvantages

If interest rates fall you may pay more for your loan than borrowers on variable rates.
Most lending institutions penalise you for making additional repayments.
You may be penalised if you pay off your home loan before the due date.

John Milles is one of our many Choice brokers that can help guide you through the mortgage maze.