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This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about Home Loans from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers, for further details refer to our FSCG. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a Home Loan, you will deal directly with a financial institution, and not with RateCity.

Fixed Rate Home Loan

When choosing a home loan there are generally a few options available: a fixed rate, variable interest rate, or a split rate. Unlike a variable rate loan whose interest rate moves with market conde rate of a fixed rate home loan will be set for a certain period. After the fixed period ends, generally from 1 to 5 years, you can decide to switch over to the variable interest rate or even opt to fix your loan for another few years.

Fixed rate home loans have been popular in Australia in recent years. At the end of 2008 when interest rates were at their peak many homeowners locked down their rates, afraid that they would climb into double digits. However, in April 2009 the Reserve Bank dropped the cash rate to 3.00% leaving many of those who fixed the year earlier in strife.

If youa??re the type of person who enjoys a degree of financial certainty then a fixed rate is the way to go. Knowing that your monthly repayments wona??t be affected by economic conditions can also provide you with security and the ability to budget carefully. Making additional repayments towards your mortgage, without being slapped with fees, is also one of the major benefits of a fixed rate.

The table below displays todaya??s best fixed rate home loan, sorted from lowest to highest rates. If you would like to compare more fixed rate loans or other mortgage products, visit our home loan comparison.

Related search: Compare fixed rate loans

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About Mortgages Articles

RateCity provides mortgage news and features, including a range of weekly stories and economic updates. By checking our mortgage news and features daily, you can ensure that you receive up to date, expert commentary on current financial and economic issues. Before you search, compare or apply for the best mortgage for you, help yourself understand the market by reading mortgage news and features at RateCity.

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