Fixed or Split Rate
You can choose to either fix or to split your home loan rate. Fixed home loan rates lock in a specific interest rate for a specific period, usually ranging from 1 year to 5 years.
It may be worthwhile fixing your loan if interest rates are particularly low, fixed rates allow you to set clearer long term budgets as repayments will always remain the same.
A split loan allows you to fix part of your home loan, while the other part remains variable. The advantage of a split loan is that are you protected against interest rates rises and you can still make additional payment on the variable portion of the loan.
Note, there fees associated with fixing our home loan, including set up and account fees and break cost fees if you decide to switch to a variable interest rate product or to another lender. You should check with your eChoice home loan manager when choosing to fix or a split rate.
