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Optio finance
Fixed Home Loan / Mortgage
Fixed interest rate
A fixed interest rate will not change during the period (term) of the fixed rate that you choose. At the end of your fixed interest rate term you can either choose a new one from the rates available at that time, or change to a floating interest rate.
For
You can’t be affected by interest rate increases, so you have the certainty of knowing exactly how much each repayment will be during the fixed term.
Sometimes fixed rates can be lower than the floating rates.
Against
If the floating rate falls below your fixed rate during the fixed term, you continue to pay the fixed rate
You might have to pay an early repayment charge if you want to make extra repayments or pay off the loan during the fixed interest rate term
If certainty and security are important to you, or you believe interest rates may go up during the term, then choose a longer term fixed rate.
If you believe interest rates may go down in the short term, or if you expect to sell your house in the near future, then choose a shorter term option.
A fixed interest rate will not change during the period (term) of the fixed rate that you choose. At the end of your fixed interest rate term you can either choose a new one from the rates available at that time, or change to a floating interest rate.
For
You can’t be affected by interest rate increases, so you have the certainty of knowing exactly how much each repayment will be during the fixed term.
Sometimes fixed rates can be lower than the floating rates.
Against
If the floating rate falls below your fixed rate during the fixed term, you continue to pay the fixed rate
You might have to pay an early repayment charge if you want to make extra repayments or pay off the loan during the fixed interest rate term
If certainty and security are important to you, or you believe interest rates may go up during the term, then choose a longer term fixed rate.
If you believe interest rates may go down in the short term, or if you expect to sell your house in the near future, then choose a shorter term option.