Interests rates are at a record low and fixed rate home loans are more appealing than ever with lenders offering attractive fixed rates for consumers to take advantage of. We are now seeing some lenders offering 4 year and 5 year fixed rate loans with interest rates starting at just below 4%. This is the lowest we have seen in recent history.
The key benefit of a fixed rate loan is that you will continue to pay the same amount of interest for the term of the loan, even if variable interest rates rise. This provides peace of mind knowing that you can manage your cash flow and ensure you can afford your mortgage repayments for the term of the fixed rate period.
Many people associate fixed rate loans with limiting freedom to make additional repayments or have an offset account, however fixed rate loans now have more options than ever. In some cases, you can now choose a fixed rate loan that allows you the freedom to make extra repayments, include an offset account and even redraw some of the extra money that may have been paid into the loan.
Another appealing option is the ability to split your home loan into fixed and variable options. This allows you the flexibility to choose how many years and how much of the loan you would like to fix and how much you would like to keep under a variable rate loan. You can even choose to split one part of the loan under a fixed term for 2 years and another under a fixed term for 3 years.
The options are endless, so get in touch with us today to discuss your options to find the most suitable loan for your personal circumstances.