A Fixed Rate Loan ensures that your interest rate and repayment amount is fixed for a set period of time. This time frame is usually between 2 and 5 years, and at the end of the term, most fixed rate loans will revert to a variable rate.
These loans can also be combined with Variable Rate products to provide you with both security and flexibility (see Split Loans). A Fixed Rate loan can offer peace of mind and some level of security to some clients but it does not allow the reduction of repayment amounts if the official interest rate should fall and generally has substantial fees for early repayment or refinance.
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