About Fixed Rate Home Loans
One of the main advantages of a fixed rate mortgage is the peace of mind that comes with knowing your monthly repayment amount.
You can’t beat the predictability of a fixed-rate home loan. When it comes to choosing the right one, we have two options for you to consider:
1. Fixed Interest Rate Home Loan
This loan is available for between 1 and 5 years. At the end of the fixed period, you have the option to refix for a new term or have the loan revert back to the standard variable interest rate.
During the fixed period the mortgage repayments and interest rate remain constant. Extra repayments are normally not permitted on this type of loan.
2. Progressive Fixed Interest Rate Home Loan
This home loan is similar to a standard fixed rate home loan, with one important difference:
- You have the ability to make extra repayments without incurring a penalty fee.
- You can also access additional features such as a redraw facility and an offset account.
- At Mortgage House, we offer a number of fixed-rate mortgages and you can compare these below.
Budgeting your finances is easier, as your home loan repayments remain consistent even if interest rates rise.
Eliminate the risk of defaulting on your home loan as a result of variable interest rate increases
Make additional payments of up to 5% for most Fixed mortgages or up to $20,000 on Progressive Fixed mortgages in a 12 month period
Some fixed home loans have offset accounts and redraw facilities
A fixed home loan interest rate can, at times, be higher than a variable home loan interest rate
If interest rates fall, the home loan repayment will not reduce as your repayment amount is fixed
Fees may apply if additional repayments of more than 5% (or $20,000 for Progressive loans) are made in a 12 month period