Lenders are rolling out SIGNIFICANT discounts on fixed interest rates.

Many lenders are offering FURTHER discounts for longer fixed period.

Fixed interest rates CAN be more expensive in the long term.


One of the questions we are asked most frequently by our clients when they are applying for a new home loan, or seeking to refinance an existing loan, is when they should consider a fixed rate home loan?

The bad news is there is no easy answer to this question. Any such decision is largely dependent upon your personal circumstances. For some people, a Fixed Home loan perfectly suits their longer-term needs and short term financial objectives.

Some Armchair Experts will be quick to tell you that in many cases people who fix their interest rate will pay back MORE interest over a 30-year term loan compared to those who choose a variable rate option. This is mostly because of the “revert” or “standard” interest rate that the loan changes to at the end of the fixed period.

None of this really helps answer the burning question… Is a fixed rate home loan the best choice for me?

If you have an upcoming life event that requires a strict budget or will reduce your income, the surety of a fixed interest rate may be perfect for your circumstances.

Another example of where a fixed rate may be beneficial is if you are saving the majority of your income for a major purchase. By minimising your loan repayments this would enable you to maximise your potential saving capability.

If you are on a reduced income and think that this is likely to continue for a few years a fixed rate may relieve some pressure on your household budget.

With rates as low as 3.49% (4.25% Comparison Rate) for a 3 Year Fixed Rate Home Loan now could be a great time to speak to one of FBT’s Expert Brokers and decide whether a Fixed Rate is a good option for your personal circumstances.

NOTE: Any quoted interest rate, whilst correct at the time of publication, is subject to change without notice and may be subject to lender specific eligibility criteria.