What does it really cost to fix your home loan?

With rates on the way up, many property investors would like the peace of mind that comes with fixing their home loan interest rate.

Unfortunately, lenders usually charge a big premium for the security of a fixed rate, leaving many borrowers wondering if they can really afford it.

The good news is that there are fixed interest rate bargains out there if you shop around and these can be seriously competitive with variable interest rates from the banks.

This means you can get the security of a fixed rate and easy financial budgeting without paying a fortune for it.

Australia’s leading online lender loans.com.au is leading the charge to cheaper fixed rates and has recently launched a Fixed Rate Special that is lower than many lenders’ variable rates.

Managing Director Marie Mortimer said rising funding costs meant that continued rate rises ahead were likely so borrowers should consider locking in their repayments.

“Funding costs for lenders have been rising steadily for six months but it seems that overnight the whole country has suddenly woken up and started talking about this and the higher home loan interest rates to come,” Ms Mortimer said.

“This is a market turning point and we are pleased to announce that we are ready to help shield borrowers from the storm with a super-low rate fixed loan that applies to both investors and owner occupiers.”

The new Smart Loan Package Special Offer starts at just 3.89% (3.94% OO comparison rate) for a two-year fixed term, and 3.99% (3.96% OO comparison rate) to fix for three years.

The same low headline rate is available with P&I or Interest-only repayments, to make it ideal for all borrowers.

Over the past month many economic commentators have reported that interest rates are bound to rise soon in response to an increase in the cost of short term funding for lenders, including the Big Four Banks.

Benchmark short-term rates, which the major banks borrow against, have been steadily rising since the start of the year while pricing for deposits is also rising.

“The beauty of this fixed rate product is its simplicity, because it is accessible to most borrowers it makes it so much easier to make that call and lock in your rate,” Ms Mortimer said.

“This really is the time to act before rates go up and you are left with regrets for years to come. This is the no regrets fix for your home loan!”

Click here to find out more about our fixed rate home loans

Loans.com.au is an award-winning online lender that is proudly Australian and based in the heart of Brisbane, with offices in other capital cities.

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