Fixed Rate Home Loans

A fixed rate loan is a loan that has a fixed interest rate and therefore fixed loan repayments. The time period of these loans can vary, but you can usually “lock in” your repayments for between 1-5 years or more. Although the fixed rate period may be 3 years, the total length of the loan itself may be 25 or 30 years. At the end of the fixed loan period you can decide whether to fix the loan again for another period of time at the current market rates or convert the loan to a variable interest rate for the remaining time left of the loan.

For example, fixed options home loan of $500,000 for 3 years based on 4% interest rate, your monthly repayment (Principle & Interest) will be $2,387. This is regardless of any movements in the interest rates your repayment will remain the same for the fixed period.