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Fixed Rate Explained
- 1. FIXED INTEREST RATE LOAN whatis, how it works, is it suitable fo
- 2. WHAT IS FIXED INTERE ST RATE LOAN Fixed rate loan’sinterest rate is fixed and set unchanged for a period of time, usually between 1 to 5 years. Because of the rate is fixed, the repayment is also fixed over the fixed rate loan term. After the fixed rate loan term expires, you can choose to fix
- 3. WHAT YOU LIKEABOUT FIXED RATE LOAN Interest rate and repayment of your loan will not change if the bank increases interest rates. So you are protected.
- 4. WHAT YOU MAYNOT LIKE ABOUT FIXED RATE LOAN You can’t make much additional repayment, and also you can’t redraw. You may have to pay break cost if you change the loan.
- 5. WHAT IS BREAK COST If you sellthe property or refinance the loan before the fixed rate loan term expires, you may need to pay the fixed rate loan break cost. The break cost is unascertainable and can be substantial.
- 6. YOU CAN LOCKIN THE RATE What are you talking about? You like the fixed rate and apply for it. But it’s not guaranteed that you will get that rate on settlement, because the rate can still change in between. You can use Rate Lock to lock in the rate you apply for. Rate lock fee may be applicable.
- 7. YOU CAN SPLITAND MIX You can split the loan and mix fixed rate loan with variable rate loan, such as Variable rate loan $250,000 Fixed rate loan $350,000 Total loan $600,000
- 8. IS IT SUITABLEFOR YOU NOW? You may consider using fixed rate loan if you believe the interest rates are going to increase and don’t have immediate plan to sell or change your property or mortgage.
- 9. WE’RE HERE TO HELP Take the guessworkout, talk to us for the professional advice and the loan solution that is suitable for you.