Fixed Rate

Fixed Rate

Most lenders offer fixed rate loans, generally for 1 to 5 year terms. At the end of the term, the interest rate usually converts to variable. On a fixed rate loan, your interest rate remains the same during the entire fixed rate term, even if variable market rates change. The fixed rates offered by lenders can be either higher or lower than the variable rate at any given time; therefore you need to make a comparison when considering this option.

Advantage: With fixed rate loans you are not impacted if variable rates increase, because your fixed rate will not change. This means that fixed rate interest can work out cheaper compared to variable rate interest.

Disadvantage: However, if variable rates decrease, you will not receive any benefit, as your fixed rate will remain the same. If market variable rates fall over time, it is possible that your fixed rate could be higher than the current variable rate, so a fixed rate loan could cost you more. Furthermore, you generally cannot make additional repayments on the loan without incurring penalties.

Access Navigator's 20+ Lenders

  • Navigator Home Loans Logo Adelaide Bank
  • Navigator Home Loans Logo ANZ
  • Navigator Home Loans Logo AMP
  • Navigator Home Loans Logo Australia First Mortgage
  • Navigator Home Loans Logo Bluestone Mortgages
  • Navigator Home Loans Logo Bankwest
  • Navigator Home Loans Logo CBA
  • Navigator Home Loans Logo Citi
  • Navigator Home Loans Logo Heritage Building Society
  • Navigator Home Loans Logo Homeloans
  • Navigator Home Loans Logo ING Direct
  • Navigator Home Loans Logo La Trobe Financial
  • Navigator Home Loans Logo Liberty
  • Navigator Home Loans Logo Macquarie Bank
  • Navigator Home Loans Logo ME Bank
  • Navigator Home Loans Logo NAB
  • Navigator Home Loans Logo Newcastle Permanent
  • Navigator Home Loans Logo Pepper
  • Navigator Home Loans Logo Plan Lending
  • Navigator Home Loans Logo Rock Building Society
  • Navigator Home Loans Logo Suncorp
  • Navigator Home Loans Logo St George
  • Navigator Home Loans Logo Westpac