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1 Year Fixed Rate Home Loans
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What is a 1 Year Fixed Rate Home Loan?
Want to gain a predictable interest rate the first year of your mortgage? A 1 year fixed rate home loan is a great option, as it is the type of home loan where you lock in the interest rate for a given period. The fixed rate could be set for one up to five years.
A 1 year fixed rate home loan protects you from fluctuating interest rates. It will stay the same despite the movements in the market. This can be advantageous for individuals who want a constant monthly rate for mortgage repayment. However, as it is a fixed rate, you won’t enjoy lower rates if the interest rates do go down. You will carry the same interest rate for the entirety of the loan unless you opt for a split loan where you can fix a certain portion and have the rest of the loan period revert to the lender’s standard interest rate.
Individuals who have a cash-flow certainty can benefit from a 1 year fixed rate home loan. By knowing what the interest rate will be, you can plan and budget for fixed repayments. There are no surprises!
Want to enquire about a 1 year fixed rate home loan?
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What Are The Features?
Depending on the lender, most major banks offer these terms for a 1 year fixed rate home loan:
- Flexible loan terms, from 10-30 years
- Additional repayments (subject to fees)
- Repayment flexibility
- Some lenders allow redraws without fees
Fixed rate home loans typically do not have exit fees, but will charge a break fee if you decide to terminate the fixed rate contract before the term ends, or if you have to discharge your debt, or switch to a lower fixed rate package.
If you are considering selling your property, making large extra repayments, or refinancing the home loan, make sure you talk to our financial specialists if a fixed rate home loan will be the smart move. It may not give the flexibility that you need in these circumstances. We will crunch the numbers to make your decision-making easier.
Ready to apply for a fixed rate home loan?
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Should You Get A 1 Year Fixed Rate Home Loan?
Getting a 1 year fixed rate home loan starts with deciding you want a consistent interest rate because of your personal circumstances. With this product you won’t have to predict variable home loan rates. While the RBA may decrease interest rates, there is no knowing when it will happen and if banks will follow suit. Moreover, the last couple of years experienced inflation. Business costs are rising, and a number of major lenders are raising their standard variable rates independent of the RBA.
Fixing your interest rate means if the RBA and lenders raise the cash rate, yours won’t be affected unexpectedly and will remain secure for the mortgage period.
Know your options and weigh whether a 1 year fixed rate home loan is your choice or if you might benefit more from a split loan. Our specialists here at Intellichoice can provide deep market insight and take into consideration your specific situation.
Let our financial experts secure your fixed rate loan
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What Sets Intellichoice Apart
Our team consists of registered and licensed mortgage brokers, who are abreast with the latest market trends in loan products. We work with proprietary technology when analysing your application in order to find the ideal 1 year fixed rate home loans for you. Our experts understand that every client should have a comprehensive array of options when it comes to home loans –Â we do the legwork, so you end up with a transparent and fully guided mortgage application process.
Confusing loan process? Get excellent support here