How Long Is a Fixed Rate Term?
Conventional mortgages have a fixed-rate term. They require full financial documentation, a 20% deposit, and a credit score near 700. Fixed-rate term mortgages remained the normal type for several years. In the 2000s when the Australian housing market and economy experienced a near implosion, lenders had to act fast. They saw that homebuyers had more difficulty qualifying for conventional mortgages. They lacked the deposit, full financial documentation, or stellar credit. To make up for the missing requirements, lenders also variable-rate term loans.
Some believe that variable rates provide savings over their fixed counterparts. Truly, it depends on the homebuyer.
The typical term for fixed-rate term mortgages is 30 years. Those who do not qualify for the conventional option can enjoy a short-term fixed term such as two or five years. Then, the mortgage converts into a variable-rate version.
Mortgage House is among the lenders that provide conventional mortgages and their alternatives. In addition, we provide fixed-rate 30 years mortgages and variable-rate ones. Our lending specialists have access to tools that allow them to evaluate applications efficiently. Then, our team can find the most appropriate loan terms for most homebuyers.
An introductory fixed-rate period of five years serves some homebuyers well. In other situations, homebuyers want 30 years of predictable repayments. Our Mortgage House lending team can explore your options with you.
Fixed-Rate Term Conclusion
A fixed-rate term is attractive to some homebuyers. Others are happy to obtain it as an introductory offer. To explore your options, contact our Mortgage House lending specialists to obtain more information.