Fixed Rate Home Loan
Understanding Your Home Loan
Compare fixed rate loans before you fix as rates vary between lenders.
Fixed rate home loans are when you agree to lock your loan into an interest rate for a fixed period of time.
Fixed mortgage rates are great for investors and also the budget conscious that need the piece of mind in knowing exactly what their repayments will be for that set period.
Fixed Rates generally do not tend to be as flexible. For instance, you may not be able to make accelerated or lump sum repayments during the fixed period. With the increase in the Standard Variable Rate (SVR) of 0.75% in 2006 and the recent increase of 0.25% on Standard variable Rate in August 2008 many are looking to fix their home loan.
Fixed rates can vary amongst lenders so if you are looking to fix compare fixed rates available first. Just complete your details in the form at the bottom of this page and you can have your own Personal Mortgage Consultant give you a call and compare the fixed rates for you!
To Fix OR Not to Fix? That is the Question
REMEMBER as we do not have a crystal ball it is impossible to predict what the interest rate is going to do. All we can do is tell you what effect an increase in the interest rate would have on a variable rate loan.
The table below illustrates how much the additional repayments would be on a loan for each 0.25% increase...
Loan Amount |
Additional repayments after rate increase (p.a.) of: * | ||||||
0.25% |
0.50% |
0.75% |
1.00% |
1.25% |
1.50% |
1.75% |
|
$150,000 |
$31.25 |
$62.50 |
$93.75 |
$125.00 |
$156.25 |
$187.50 |
$218.75 |
$200,000 |
$41.67 |
$83.33 |
$125.00 |
$166.67 |
$203.33 |
$250.00 |
$291.67 |
$250,000 |
$52.09 |
$104.16 |
$156.25 |
$218.34 |
$255.41 |
$312.50 |
$363.59 |
$300,000 |
$62.50 |
$125.00 |
$62.50 |
$187.50 |
$312.50 |
$375.00 |
$437.50 |
* base used is standard variable rate of 8.32% per annum with additional monthly repayment calculated on a
30 year loan. (The SVR has increased by 1.25% over the last 18 months)
If you have any concerns that an increase in the Standard Variable Rate may seriously impact on your ability to meet your loan repayments, then you may wish to consider and let us compare Fixed Rate Loans for you?
If you do not want to loose the flexibility that a variable rate offers you then an alternative could be to consider a split rate home loan.