Fixing the interest rate on your loan (or on a portion of your loan) can offer benefits including:
However, when fixing your loan, you should be aware of the following restrictions:
a. inability to off-set fixed loans
You are unable to link an offset account to the fixed loan/portion of loan fixed. This limits your ability to use any cash to reduce interest on the loan.
b. break costs and other fees
When a Bank lends money at a fixed interest rate, it does so with the understanding that the borrower will make certain fixed rate repayments for the whole of the fixed
If, during the fixed rate period, you:
you will be charged a break cost plus an administration fee.
As this general advice has been prepared without taking account of your objectives, financial situation or needs, you should consider the appropriateness of this advice before acting on it. If this general advice relates to acquiring a financial product, you should obtain a Product Disclosure Statement before deciding to acquire the product.
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