Fixed Rate Home Loan

A fixed rate loan can offer you peace of mind and help you plan ahead. If you are concerned about interest rate rises or just want the certainty of knowing what your loan repayments will be in the future, consider a fixed rate loan.

Facts at a glance

Effective: 25 February 2008
About the loan	A fixed rate loan allows you to secure an interest rate for a set term, which can protect you against rate increases. This means that if interest rates rise, your interest rate, and therefore your repayments, will not increase during the fixed rate term.
Fixed rate terms	1, 2, 3, 4, 5, 7 or 10 years. At the end of the fixed rate term this loan reverts to the Real Options Home Loan variable rate. At this time you can choose to re-fix your loan for a further term or continue on a variable interest rate.
Establishment fee	$300
Ongoing account keeping fees	Nil.
Maximum amount you can borrow	Up to 100% of the value of the property.
Mortgage repayment holiday	Yes. As long as there are enough additional funds in the loan account to meet the regular payments. Talk to your local Community Lending Manager to find out more.
Value Credit Card	Yes. Members have the option of a $5,000 pre-approved Value Credit Card with every new home loan approved.
Maximum loan term	30 years.
Repayment frequencies	Monthly, fortnightly or weekly by automatic transfer.
Repayment options	Principal and interest repayments or you may prefer interest only repayments (for up to 10 years).
Split loan	You can combine this loan with other Newcastle Permanent loan products including: Intro Rate Home Loan, Real Equity Home Loan, Real Deal Home Loan or Premium Plus Package Home Loan.
Additional repayments	Yes. You can make either regular additional repayments or extra lump sum payments up to $25,000 p.a. without incurring an Early Repayment Fee during the fixed rate period. An Early Repayment Fee or Break Cost also applies if the loan is paid out during the first 4 years or the fixed rate period if this is longer.
Redraws	Not available during fixed rate term. Available on application once loan reverts to the Real Options Home Loan.
Portability	Yes. You can keep the same loan when it comes time to sell your existing property and purchase a new one.

Interest Only in Advance

This loan is designed to allow property investors to prepay a full year’s interest in advance, where their cash flow permits. By paying the interest in advance, these borrowers take advantage of the discounted interest rate, and may also receive some tax benefits through this type of loan structure. All Interest Only Advance loans are fixed and require equal annual payments of interest at the start of each year of the Interest Only Advance term. No additional repayments are permitted into these loans.