A lot of people will see a low fixed rate and think, "Great, I can lock in that interest rate at a low mark and be comfortable in knowing my repayments aren't going to change." And that's very true.
Here are some things to be aware of with fixed-rate loans.
Payment Restrictions
What you need to be aware of with fixed-rate loans is they often come with a restriction on how much extra you can pay into the loan.
Limited Redraw Capability
They often won’t allow you to redraw those extra funds that you’ve paid.
No Offset Account
They won’t come with an offset account in most cases.
High Exit Fees
If you have to break a fixed rate loan because you’ve sold the property or you want to refinance, the exit fees are usually quite high.
