The Rock Building Society Fixed Rate Home Loan has a choice of one, two, three or five year fixed terms with very low to moderate fixed interest rates for shorter to longer terms if you’re an owner-occupier and very low to moderately high rates if you’re an investor depending on the term and how much you’re borrowing.
There is a small deposit requirement for this loan, however, you will not only have to pay the higher range of fixed rates offered but also the cost of lenders mortgage insurance for deposits smaller than 20 per cent.
Repayments can be made on a weekly, fortnightly or monthly basis as principal and interest repayments and you can choose the interest-only option where you’ll only pay the interest due on your loan for a certain period.
You can also make additional repayments up to a certain amount per year without penalty while being able to access these early repayments through the redraw facility, which is free to use online. This loan can also be split up to six times between variable and fixed portions.
The Rock Building Society Fixed Rate Home Loan could be good for borrowers wanting the stability of a fixed interest rate with some added flexibility in how they repay their loan. Investors may be attracted by the interest-only repayment option while the small deposit requirement could attract first home buyers.
However, the high upfront cost and higher rates for smaller deposits might make this more suitable for investors with the funds to cover these costs or for borrowers with a greater deposit.
The Rock Building Society Fixed Rate Home Loan could be a great option with lower rates available and features such as an interest-only period, construction facility, loan split option, early repayments and a redraw facility.
However, the lack of a 100 per cent offset account and higher rates offered for smaller deposit sizes makes it worthwhile to research your options and figure out exactly what you want in your home loan and what your borrowing power is in order to see if the Fixed Rate Home Loan will pay off for you in the long run. It is also worth noting that once the fixed rate period is over the loan reverts to a rather high variable rate, which may mean you’ll end up paying more in interest over the life of your loan.