You can’t find best-fixed rate with a quick Google search because most banks change their rates on a weekly or fortnightly basis.
Because we are a mortgage broker, we can usually find a better-fixed rate than that offered by your current bank. This is because:
We have access to fixed rate specials. Sometimes banks offer specials on fixed-rate loans when they have cheap long-term funding available. This funding is generally only accessible to one lender, making them the market leader for a short period.
We have more lenders to choose from. There are always some lenders that are offering better deals for fixed rate loans and the fixed rates offered by the market leader are often unbeatable for the other banks.
We are aware of the hidden conditions and charges. We can find the best loan for you because we know the terms and conditions of each lender.
We can help you secure the cheapest fixed rate loan for you. Contact us or enquire online to speak to one of our mortgage brokers.
What reasons are there to fix for 10 years?
In Australia, 10 years is one of the lengthiest terms for fixed rates. Why might you want to fix your loan for such a long period of time?
Firstly, fixing your loan can provide you with security. In the past few years, we have seen many major economic shifts. Having a fixed loan can save you from the uncertainty of the financial markets.
Banks consider you to be a lower risk when you have a long-term fixed rate and they may increase the amount you can borrow.
If you have knowledge of the financial market and the future of interest rates, fixing your loan can also save you money.
What type of people fix for the long term?
Professional investors who have long term plans for their property and require stable investments will often lock their rates for a 10 year interest only fixed rate. This keeps the payments consistent and they are free to focus on new investments
Investors can risk losing large property portfolios if the reserve bank increases rates significantly. They will often fix some of or all their portfolio to protect it from market changes.
Conservative home owners often prefer to have fixed rate loans because they are worried about the possibility of an economic crisis. After an economic meltdown, it is too late to fix your rate so fixing early can save you from future hardship.
What are the features of 10 year fixed loans?
The majority of fixed rate loans have restrictions on extra repayments, lack a redraw feature and do not have a 100% offset account. The features of long term fixed loans vary from bank to bank. When choosing a long term fixed rate, it is important to consider the additional features offered with you loan.
Once you have made decision on the features, you can contact us and we’ll help you choose a lender that is suitable for you.
How should you structure your loan?
Professional investors often set up their loan as a sole loan account that is fixed with interest only repayments. They do not need to make extra repayments, redraw or pay off the loan early.
Home owners require more features and flexibility and this leads them structure their loan to be part fixed and part variable. They can then can make extra repayments and redraw on the variable portion.
Depending on how much the home owner believes they are able to repay during the first 10 years of the loan, the fixed rate portion of the loan is generally between 50% and 90% of total loan.
Who shouldn’t fix their loan for long term?
A fixed rate is not right for everyone and is actually only suitable if your personal situation is not likely to change in the future.
A 10 year fixed rate is not right for you if you plan to make large sum repayments, you want to sell the property in the next 10 years or you require a flexible loan with extra features.
If you discuss your requirements with our mortgage brokers, you can structure your loan to support your future plans.
How do you apply for a fixed rate loan?
You can contact us or enquire online, one of our mortgage brokers will contact you shortly to talk about you options.
You should seek pre approval before entering into a 10 Year Fixed Rate Home Loan arrangement. The reason is simple, building is a complex excerise requiring good co ordination and technical skills.
Lenders are aware of the complexity builders face, and the possibility of costs over runs. This comes primarily from in-experience with managing this type of project. Hence most lenders are not generous when it comes to lending at high LVR’s on an 10 Year Fixed Rate Home Loan.
Our mortgage broking is second to none. Don’t waste your time and money running around from bank to bank, sifting through ambiguous loan offers only to find they don’t work. Take advantage of our expertise and let us find the right loan or finance to suit YOUR needs.