Benefits of a Fixed Rate Home Loan

Refinancing your home loan to get access to a better fixed rate is a great way to save money. Fixed rate loans and fixed interest rates provide home owners with the ability to know that their mortgage repayments are set for a period of time, allowing them to budget and plan accordingly.

At Australian Credit and Finance, our Home Loan Experts can help you secure a great fixed interest rate by completing a mortgage health check and providing recommendations around refinancing options. Call our team on 1300 735 557 today.


Benefits of a Fixed Rate Loan


As you look at your refinance options, considering a fixed interest rate home loan is a good option for a number of reasons. Some of these include:

  • Fixed interest rates are normally slightly lower than variable interest rates
  • Fixed monthly repayments for a set period of time
  • Safe option when interest rates are volatile

Refinance your home loan into a fixed rate loan is a good option if you need to fix your monthly repayments for a set period of time. If you don’t enjoy Russian roulette, then a fixed interest rate is your best option.


Compare Fixed Rate Home Loans


Other Factors to Consider


At Australian Credit and Finance, because we don’t provide the actual funds, it means we can shop around and find the best loan to meet your needs.

There are a number of lenders who offer other options with their fixed rate loans, such as features and flexibility that can mean you pay off your home loan faster. These might include allowing extra repayments or providing redraw facilities.

Make sure you read the fine print though, as even though these may be an option on your fixed rate loan, there could be fees associated with these types of transactions.

We will work with you to ensure that all fees are clearly explained to you, so you don’t fall into the trap of making extra payments and then getting stung with fees.

If you have a family or are planning to start a family, utilising a fixed rate home loan is a great option, particularly if your income is likely to drop as one of you stays home to look after the kids.

As you’re deciding whether a fixed rate home loan is the right option for you, it’s important that you consider the length of time you want to be locked into this fixed rate for.

In Australia, you can choose to fix your interest rate from 1-10 years, but the most common fixed term is 3 years. Talk to one of our Home Loan Experts to discuss which option is right for you.

As your fixed rate home loan comes to an end, you will have a number of options available:

  • You can choose to lock your home loan for another set period using a fixed interest rate
  • You can switch to a different home loan product, like a variable rate home loan
  • You can refinance this loan with your current lender or move to another

If you can’t make up your mind what to do at the end of the fixed interest term, using ahome loan calculator will help.

Fixed rate loans might be the right option for you when it comes to refinancing your current home loan. Talk to our team of experts about what fixed interest rates are available and get a fixed rate now.

Talk to our friendly team of Australian Credit and Finance mortgage experts who can help you navigate your way through the process of buying a home, investing in property or refinancing your home loan. Call us today on 1300 735 557 to discuss your fixed rate home loan options.