Fixed Interest Rate Loans

This product is suited to applicants who want to lock into a fixed rate and safeguard against potential interest rate rises. The interest rate is fixed for a specific period - anywhere between one to five years. At the end of the fixed rate period the interest rate will convert to a standard variable interest rate for the remainder of the loan term. There is the option to fix the loan after the initial fixed rate period has matured.

Economic break costs may be incurred if a fixed rate loan is discharged prior to the expiry. The break cost amount will be influenced by the lenders reference rate at the time of the break and the time remaining to maturity.

The key benefits of fixed rate loans are:

• Protects borrowers in a rising interest rate environment.

• Enables borrowers to budget for the future with confidence.

• Principal reductions may be made up to an allowable limit (before break costs apply).

The prevailing fixed rate can be "locked in" at the time of lodging a full loan application with certain lenders. A Rate Lock fee will be payable. This ensures the rate will not rise (but can decrease) above the "locked rate" for a defined period (usually 3 months) from approval.