Fixed home loan applications are much the same as a variable rate home loan application. Compared to a variable home loan application, there are no special criteria you have to follow for a fixed home loan application.
The main difference is that the calculation for your repayments when you are working out how much it will cost you, will be set for the chosen fixed period. For example, if you fix at 7.5 percent p.a. for three years, you will be making repayments at that rate until the fixed period ends. Following the fixed period, the rate will revert to the lenders current variable rate. You can use home loan calculator RateCity.com.au to help understand the difference in repayments between vairable and fixed rates over different time periods.
One important factor you must be aware of with fixed home loan applications is that even though the advertised fixed interest rate may be set at one figure, by the time your loan is processed and approved, that rate may have changed by the lender.
To search, find and apply for a range of home loans to fit your needs use RateCity.com.au – Australia’s leading financial comparison website.