What are the benefits of a fixed-rate home loan?

If you're interested in purchasing property in the near future, it could be worth looking into the home loan options available to you. There is a wide range of different types that can change the way you approach the real estate market, so having a decent idea about the various mortgage options can help you make an informed, confident decision. 

One of the most common home loan types for first home buyers is a fixed-rate mortgage. There are a numerous benefits to securing one of these mortgages for your property endeavours​, given the stability of them. 

What are the benefits of a fixed-rate home loan?

One of the main reasons fixed-rate home loans are considered to be great for first home buyers is the security that comes along with the mortgage. Fixed rate refers to the interest rate, which remains constant and steady for a certain period of time (usually between three to five years). 

What this means is the amount of interest charged on your repayments will remain consistent for this period. This is in contrast to a variable-rate home loan, which can be influenced by changes in the official cash rate and is comparatively unpredictable. 

The benefit of having the same repayments means it's easier for buyers to budget for the future. This is often a good thing for young first time buyers who may still be coming into their own with regards to money. 

Furthermore, securing a fixed-rate home loan at the moment could work out to a low interest rate, due to the historically low cash rate currently being experienced across Australia.