Why Choose "FNHL&I" for Your Home Loan and Finance

A fixed rate loan is when you lock your interest rate at a set amount for a set period of time. Fixing your interest rate is useful for those who want regular, consistent amounts to pay towards their loans, and for those who are afraid of continued bank rate rises.

A fixed interest rate is good for those families and home owners that don't want the stress of constantly monitoring the rate rises and allows you to set a budget for the period of time you fix your rate for.

When fixing your interest rate, you are saying that you think interest rates will rise much higher then the fixed interest rate amount, (which is normally higher then the market variable rate,) and that fixing will cost less over time or be easier to manage.

Something to remember about fixed interest rate loans is that after the fixed period has expired, your interest rate will then move up to the current market variable rate. This could mean a big jump in repayments for you depending on how the interest rates have moved over the course of your fixed period.

It is also important to note if interst rates continued to fall during the time you fixed your interest rate, these savings would not be passed onto you. You should seek professional advice from an independant financial consultant to make sure your confident that fixing the interest is the right decision for you.