Fixed rate rule changes
The rules around how you much you can additionally pay off your fixed rate home loan, over and above your normal repayment amount are changing.
Many lenders are now adding maximum amounts you can additionally pay on an annual basis or over the term of the loan. Some lenders have also introduced fees if you do want to go over their policy threshold.
Why are banks doing this?
Essentially it comes down to minimising their risk. The fixed rate funds they lend can be from deposits or investments that require them to pay back a certain interest rate that matches the loan term.
What can you do?
If you have a fixed rate or are thinking about taking one out, let’s talk. There’s a few steps we can take that could save you money:
- Match a fixed rate term to your goals
- Compare hundreds of fixed rates from different banks
- Weigh up different pros and cons of each lender (some lenders even offer offset accounts with fixed rates now).
Give me a call if you want to chat about fixed rate home loans.
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