Suncorp Metway: Fixed Rate Loans In The Spotlight

The advantage of fixed rate home loans, such as the one offered by Suncorp Metway, is that you can have the peace of mind of knowing exactly what your loan repayments will be for the fixed period and don't need to worry about interest rate rises.

Suncorp offer fixed rate loan terms of between 8 and 30 years, with fixed rate periods from between 1 and 5 years. After the fixed rate period, borrowers have the option to refix their loan, or revert to Suncorp's standard variable rate. They also provide the flexibility to make repayments on a weekly, fortnightly or monthly basis.

While the interest rate stays fixed and means you won't be affected by rate rises, the Suncorp loan limits the amount of extra repayments you can make to $500 extra per month. Any payments made over this amount will carry a fee, which means you are not able to easily clear your home loan debt.

On top of repayment restrictions, Suncorp charge a Deferred Establishment Fee if your home loan is paid off in full within the first 4 years of your home loan term.

The Suncorp fixed rate loan attracts quite a hefty application fee of $600 and ongoing monthly fee of $10, but if you're considering switching your current loan to a Suncorp product, they do offer to help cover the cost of switching. The offer is subject to change without notice though, so don't completely depend on them to cover the cost of transferring your loan from another lender.

Suncorp also charge a Guaranteed Fixed Rate Fee, which sets the interest rate for the first 90 days of your loan. While this lower introductory fixed rate could be advantageous, be aware that the Guaranteed Fixed Rate Fee is calculated as 0.15% of your total loan amount.

If you have decided that a fixed rate loan is your best option for your home or investment property, remember to shop around with a number of different lenders to find the loan with the features and flexibility you need. You may be able to fix just part of your home loan with a split loan product. Speak to your financial broker for professional advice on the best solution for your financial situation.