What is a fixed rate home loan?
307 words | 1.5min Read Time
A fixed rate home loan allows you to secure an interest rate on your home loan, with the rate generally fixed for between one and five years. Choosing a fixed interest rate is a great way to give you stability and certainty over your mortgage repayments for the medium-term, meaning you’ll know what your weekly or monthly repayments will be and can confidently plan for the future. The good thing about locking in a fixed interest rate is that you have stability, and you know how to budget for your repayments during that fixed-term. When considering a new home loan, our clients decide between a fixed interest rate, a variable interest rate or a combination of both.
Fixed rate home loans offer peace of mind knowing that your repayments stay the same for the length of time they are fixed for, regardless if interest rates rise. The current home loan market is looking good, after a troublesome economic year, interest rates are at historical lows, with rates varying between lenders. This means there are some great interest rate deals on offer from banks and lenders, and our team at JLH Finance Advisory shop around to find the most competitive loan rate for our clients.
Interest rates are currently at historical lows, with rates varying between lenders.
Knowing when to choose a fixed home loan rate will consider your personal circumstances, but can also be about timing, and whether experts predicts rates are on the rise, are stable, or if they might fall lower in the short-term. Talk to our local team of expert home loan brokers today to see if fixing your home loan interest rate is right for you.
Everyone’s situation is different, so if you’re in the market for a mortgage and are unsure about whether you should fix your home loan interest rate, give the team at JLH Finance Advisory a call for a free chat!