In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
Fixed Rate
Is an interest rate on a loan that is locked in for a specific period, normally 1-5 years. This allows the borrower to accurately predict their future payments as the repayments do not change for the life of the fixed period.
Variable rate loans, by contrast, are anchored to the prevailing discount rate and subject to change at any time.
It’s important to understand the period of your loan being fixed will expire after an agreed time of between one and five years. Once the fixed rate term ends, your mortgage will go back to being variable rate so the rate can fluctuate over the life of your loan.
A fixed interest rate loan is a loan where the interest rate on the loan remains the same for the life of the loan. A variable rate loan benefits borrowers in a declining interest.
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- Predictable payments – the repayments don’t change, so you will know exactly how much they are and can make budgeting easier.
- Protection against rising interest rates – unlike variable rates, if the rates rise over time, your rate will remain as it is
Prior to 2022 fixed rates were well below variable rates for home loans, in fact, they were the lowest they’ve been in Australian history. But fast forward to 2023-2024 this has changed and majority of fixed rates are higher than the variable rates.
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