With fixed rate home loans the interest rate on your loan is fixed for a specified number of years. Repayments remain the same, protecting you in that period against interest rate increases. But it also means you don’t benefit from rate drops should they occur. At the end of the period, you can choose to fix the rate again.
As mortgage managers Direct Credit Home Loans enjoys long term relationships with clients. We will be there to offer you guidance on all the benefits and features of the different Loan products and whether they are right for you.
Frequently asked questions
Can I split this loan?
One loan allows up to four loan accounts and comprises a mix of loan products. Very useful for borrowers wanting to distinguish between loan purposes and receive assistance with income tax preparation.
How does the fixed rate work?
Fixed for 1, 2, 3, 4 or 5 years, reverting to a variable rate thereafter.
Can I reduce the principal?
Yes, however if the loan is paid out in full during a fixed rate period, break costs may apply. Maximum extra payments allowed during the fixed rate period is $20,000
Can I redraw on this loan?
Not during a fixed rate period.
Can I substitute a new property as security for the loan?
The security property can be substituted if required. Note there may be restrictions if loan size needs to be altered, and break costs if the fixed rate has to be broken or limits reduced.
What fixed products do you offer?
- Direct Fixed rate loans apply to full doc loans only (Excluding Low doc and Credit impaired product suite)
Loan amount must be over $100,000 and loan to value ratio must not exceed 80% LVR. $120 Annual fee applies.
- Higher LVR Fixed rate Loans
Minimum loan amount $100,000, and LVR available up to 95% maximum for Owner Occupied or 90% for Investment. Mortgage insurance can not be added above 95%.
- (Interest rate loading apply on all loans above 80% Lvr)
- Fixed rate loans can be 1 – 5 year term, either Principle and Interest or Interest only