Fixed Rate Home Loan

Fixed rate loans protect you against interest rate changes for an agreed time, so you have peace of mind knowing your repayments won't increase. However, you won't benefit if rates go down during the fixed term.

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

Pros:

  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

Cons:

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