Fixing your home loan rate with a Sydney mortgage broker is the best way to secure a great home loan and take control of your real estate finances. We can find you the perfect match.
Interest rates may go up or down, but with a fixed rate home loan your rate will stay the same and so will your repayment amount. If you are on a tight budget, or just want the security of knowing how much is going out each month, a fixed rate home loan may suit you.
Fixed rate had been falling but are set to rise in the not too distant future. Therefore, it may be a good idea to look into fixed rates now.
The way it works is by fixing the rate you pay for a set length of time. Most commonly, homeowners fix their home loan for three to five years, although it can be anything from one year to 15 years in some cases. At the end of the fixed term, the loan revert back to a variable rate, unless you renegotiate another fixed contract. It really depends on the economic situation at the time and your financial circumstances.
You will pay the same repayment amount on each due date. Most commonly a fixed mortgage is repaid monthly, although you may be able to talk to your lender about making fortnightly repayments if you prefer. The big advantage with fixed home loans is the security of knowing exactly how much you will be paying each payment date. This is great for those homeowners on a budget or simply wanting the peace of mind this offers.
Fixed home loans do not usually come with all the trimmings that you commonly expect with a variable rate loan. Sometimes they come with limited features but there are fewer options than with a variable rate. There fore, should you wish to make extra repayments for example you may have to pay a fee. Interest rates for fixed home loans are traditionally comparable to the current variable rate, although at the moment fixed rates are lower than variable rates, so you can save money right now as well as locking in security for the next few years.
When deciding between fixed and variable, look at your circumstances, how much flexibility you require, versus how much security you want, and whether you think interest rates are on the way up, or down. Talking it through with your mortgage broker is a good way to see your options clearly.
For all the details on fixed rate loans contact your mortgage broker Sydney today or complete the form on line.