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Fixed Rate Home Loans

Fixed Rate Home Loans

Making the choice to buy a home isn’t an everyday financial decision, and it’s certainly not an everyday purchase. There’s a good chance that buying a property is likely the most expensive investment you’ll ever make, and as such, you want to take out a loan that is most suited to your financial needs.

When considering what you would look for in an ideal home loan, characteristics such as reliability stability and affordability might come at the top of the list. With a fixed rate home loan from Future Financial, you can be sure you’ve met these criteria.

 

Why do you need a fixed rate home loan?

There are many reasons why Australians take out fixed rate home loans every single day. Home loans are not simply financial instruments – they can also serve as valuable tools for financial planning and growing your long-term wealth.

Getting a home loan pre-approved is often the first step for buyers looking to become first home owners. Securing a home loan first means you know your price limit before looking at potential properties, as well as putting you on the front foot when it comes to negotiating with sellers.

But fixed rate home loans aren’t solely limited to first-time buyers. They can also help existing home owners purchase a new property to move into or even to make an investment.

There are many reasons why a home owner might look for a second property. A growing family, a career change or reasons of lifestyle and convenience can all feed into the necessity for a new home in a different area. Whatever the case, a home loan can make it happen.

You might also consider refinancing home loans for various purposes – to make additions, improvements and renovations to your existing property, for example. Perhaps the size of your household is increasing and you want to build an extra room. Or maybe you want to add an expensive feature, such as a pergola, that will not only improve the appearance of your home but also increase its value. A mortgage refinance can give you the capital to carry out this work.

Perhaps most importantly, property is also an investment – one that you have a greater degree of control over than other assets. If you make the right decisions, over time that property can be used to help secure your retirement and strengthen your financial standing.

Whether it’s buying, investing or renovating, a fixed rate home loan can help you achieve your goals.

 

What are fixed rate home loans?

Explaining what a fixed rate home loan is almost as basic as taking one out. Simply put, a fixed rate home loan is a home loan whose interest rate stays the same value for a set period of time of your own choosing. This period can be anything from one to five years, giving you plenty of options.

This may not seem significant at first, but all it takes is a quick consideration of interest rates and the way they work to get an idea of the advantages you get with fixed rates.

Interest rates help determine how expensive your mortgage repayments will be. The amount left to pay on your mortgage will regularly increase by the percentage value of its interest rate.

However, interest rates are not stable – they fluctuate depending on anything from inflation and the state of the economy, to the balance between exports and imports and unemployment. So whether a given interest rate is high or low now is no guarantee it will stay that way in the future.

 

Mother and baby in dining room with laptop smilingWhat are the advantages of fixed rate home loans?

Fixed rate home loans have a number of key advantages given the volatility of interest rates.

First, consider a home loan with a variable rate, where the amount of interest on the mortgage will rise and fall based on the direction of the wider interest rate environment. If interest rates around the country rise, chances are the interest rate on your mortgage will too – leaving you making higher mortgage repayments than you had budgeted for when you initially took out the loan.

With a fixed rate home loan, you don’t have to worry about what the impact on your mortgage may be from something you cannot control – in this case, the conditions of the wider economy. Instead, your interest rate will stay at one, fixed value for the particular period that you choose, providing you with financial stability for the future.

You can further capitalise on the terms offered by fixed rate home loans by choosing your timing wisely. If fixed home loan rates are particularly low at one time, taking out a fixed home loan at this time could pay off down the line if they rise.

Finally, a fixed rate home loan can help you budget without problems. Making a monthly budget – not just for mortgage repayments, but for bills, food, pleasure and other regular living costs – can be tough enough. But doing so when interest rates keep going up and down, altering the amount you should be budgeting for, can further complicate the situation.

Under a fixed rate home loan, you can plan your finances securely, knowing that the amount you repay is going to stay the same month to month for a set period of time.

 

When might fixed rate home loans come in handy?

Imagine a young couple – Kelly and Darren. They’re young professionals who have just recently started a family, with another baby on the way. At the moment they’re renting, but their dream is to have a place of their own in which their children can play and grow.

They’ve managed to save up enough money for a deposit as well as all the supplementary costs – stamp duty, broker and lender fees and insurance. Having worked out a budget, they know they can afford the monthly repayments under the current circumstances, but aren’t sure about the future – if interest rates rise dramatically, this could well put a squeeze on them financially. After all, they’ve only just finished paying off their student loans.

If Kelly and Darren are worried about what future interest rate increases could mean for their bank accounts, a fixed home loan could well be their solution. By taking advantage of fixed home loan rates that are low now, they’ll lock in this rate and be on track for repaying their mortgage as they’d originally budgeted – and focus more on enjoying their new home than what’s going on with their finances.

 

Future Financial has the fixed rate home loan deals for you!

If you’re thinking about taking out a fixed rate product, look no further than Future Financial’s fixed rate home loans. At Future Financial, you can not only fix your rate for a period of one to five years, but you can also hold a 100 % offset account at the same time, giving you security and flexibility all in the one product.

If you’re ready to secure finance for a property, contact the team at Future Financial. We’ll help you find a suitable home loan for your needs.


Your Home Your Mortgage:
A Home Buyers Guide

Your Mortgage Your Options:
A Home Owners Guide To Refinancing



From the moment you turn the key in the lock and take those first few steps through your new front door, the feeling of owning your own home is second to none.

Your Home Your Mortgage aims to arm home buyers and investors with essential know-how and proven techniques to ensure you avoid the common pitfalls of financing a property.


There’s no question the current mortgage environment is one of the most competitive in our nation’s history.

Refinancing provides Australians with a platform to get a better deal on their current mortgage, many of which may have been locked in some years ago at interest rates well above what’s on offer in today’s competitive market.



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Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Before making any decision in relation to a Future Financial product, you should read the relevant disclosure document. All rates and fees quoted in our products are indicative only and can change dependent on your personal circumstances. Conditions and fees apply.

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