​Are you a planner? Do you like to organise things in advance, and enjoy the security of knowing what the future holds in store? Do you take a comprehensive list with you to the supermarket?

Well a fixed rate loan might be your perfect fit. Fixed rate loans are:

Great for managing a tight budget…

Fixed rate loans are an excellent option for anyone who is operating on a very tight budget. If an extra fifty dollars per week would mean choosing whether to feed your children, or put petrol in the car - this is probably the loan for you.

Great for peace of mind…

If you opt for a fixed rate loan, you will know exactly how much your repayments will be for the duration of the fixed period. Many lenders offer up to 10 years on their fixed rate loans, so this could give you substantial peace of mind.

Fixed rate loans can save you money…

If interest rates increase during the time when your rate is fixed, you will be immune. When everyone else is complaining about having to give up their daily coffee, you’re safe in the knowledge that your repayments aren’t going to change.

On the flipside though…

You will forfeit your chance to pay a reduced interest rate if the cash rate is lowered. When other borrowers are enjoying a well-earned reprieve, you will still be making the same repayments. This can represent a significant cost to you if interest rates drop by half a percent or more.

Less flexibility

If you choose to fix your rate, you get security at the expense of flexibility. You probably won’t be able to change the features of your loan during the fixed period, and most lenders don’t allow you to make any lump-sum repayments when your rate is fixed.

It’s critical that you take the time to research the different loan options available to you, and ask plenty of questions to ensure that the loan you choose is the best option for you. For many borrowers, fixed rate loans are an excellent choice to help you manage your budget and plan for the future.