While you can enjoy a low fixed rate with the BankVic Fixed Rate Loan for loan periods from one to three years as an owner-occupier or an investor, four to five year fixed terms have a moderate to moderately high fixed rate.
And, keep in mind that at the end of your fixed term that your fixed rate will revert to the standard variable rate offered by BankVic, which is moderately high.
Repayments towards your Fixed Rate Loan can be made on a flexible schedule with weekly, fortnightly or monthly repayments.
You can also make additional repayments towards your loan however these are capped while you are on a fixed rate. Additionally, there is no redraw facility attached to this loan so you won’t be able to access these funds once they are committed to your loan.
Extra features included with your Fixed Rate Loan are pre-approval and loan portability, both of which will help you if you are looking to buy.
In order to be eligible for the BankVic Fixed Rate Loan, you must be borrowing at least $50,000, although you only need to make a five per cent deposit on a new property to take out this loan. That said, if you have less than a 20 per cent deposit you will need to factor in the cost of lender’s mortgage insurance which can be quite costly, depending on your loan amount and your deposit size.
If you are purchasing a new home or investment property and want the stability of knowing exactly what your repayments will be through having a fixed interest rate, this could be a suitable loan option.
This loan would be better for borrowers looking to have a fixed period of up to three years, because for four and five fixed year terms, the fixed rate increases from being very low to moderate for owner-occupiers and between moderate to moderately high for investors.
The fixed rates are reasonably competitive, and the fees are moderate compared to other fixed products on the market, however borrowers will find they can’t offset the interest or pay large amounts off their loan with this product.
Borrowers should also be aware that the loan will revert to a moderately high variable rate after the fixed term finishes so it’s likely you’ll need to make higher repayments at this time.