Fixed Rate Explained

1. FIXED INTEREST
RATE LOAN
what is, how it works, is it suitable fo

2. WHAT
IS
FIXED
INTERE
ST
RATE
LOAN
Fixed rate loan’s interest rate is
fixed and set unchanged for a
period of time, usually between
1 to 5 years.
Because of the rate is fixed, the
repayment is also fixed over the
fixed rate loan term.
After the fixed rate loan term
expires, you can choose to fix

3. WHAT YOU LIKE ABOUT FIXED
RATE LOAN
Interest rate and repayment of
your loan will not change if the
bank increases interest rates.
So you are protected.

4. WHAT YOU MAY NOT LIKE ABOUT
FIXED
RATE LOAN
You can’t make much
additional repayment, and
also you can’t redraw.
You may have to pay break
cost if you change the loan.

5. WHAT
IS
BREAK
COST
If you sell the property or
refinance the loan before the
fixed rate loan term expires,
you may need to pay the fixed
rate loan break cost.
The break cost is
unascertainable and can be
substantial.

6. YOU CAN LOCK IN THE
RATE
What are you talking about?
You like the fixed rate and apply for it. But it’s
not guaranteed that you will get that rate on
settlement, because the rate can still change in
between.
You can use Rate Lock to lock in the rate you
apply for. Rate lock fee may be applicable.

7. YOU CAN SPLIT AND MIX
You can split the loan and mix fixed rate loan with
variable rate loan, such as
Variable rate
loan
$250,000
Fixed rate
loan
$350,000
Total loan
$600,000

8. IS IT SUITABLE FOR YOU NOW?
You may consider using fixed rate
loan if you believe the interest
rates are going to increase and
don’t have immediate plan to sell
or change your property or
mortgage.

9. WE’RE
HERE TO
HELP
Take the
guesswork out,
talk to us for the
professional
advice and the
loan solution
that is suitable
for you.