Fixed rate personal loans offer you the benefit of the same repayments no matter what happens in the market. Whether you are looking for a secured loan to buy a car or an unsecured loan to pay for a holiday, a fixed rate loan could be worth considering. This page is a guide on fixed rate personal loans with five-year terms.
Harmoney Unsecured Personal Loan
- Borrow from $2,000
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Harmoney Unsecured Personal Loan
Apply today to get approved within minutes for up to $50,000.
- Max. loan amount: $50,000
- Loan term: Up to 60 months
- Turnaround time: 99% of approved online applications funded in 24 hours
- Fees: Establishment fee of $200 for loans from $2,000-$5,000 and $450 for loans from $5,000-$50,000
- No early repayment fees
- Personalised interest rates based on your circumstances
Personal loans you can fix for 5 years
How does a five-year fixed rate personal loan work?
When you apply for a fixed rate personal loan, the rate stated in your loan contract is locked in place for the duration of your five-year term. Taking into account other ongoing fees, this rate is used to calculate your repayments. Your weekly, fortnightly or monthly repayment stays the same for the entire five-year term. At the end of the term, your debt will be repaid.
What are the types of fixed rate personal loans?
A few different types of fixed rate personal loans exist, each suited to different loan purposes and for borrowers in varying situations. Depending on what you need, either of the following might be suitable:
- Secured fixed rate personal loan. If you are looking to purchase a car, draw on your home equity or even use a high-priced asset as a guarantee, you could consider a secured fixed rate loan.
- Unsecured fixed rate personal loan. An unsecured personal loan may be more suitable if you aren’t looking to buy a vehicle; your vehicle isn’t eligible to be used as a guarantee; or you are looking to pay for a holiday or consolidate debt.
How you can compare fixed rate personal loan options
If you are wondering which fixed rate loan is right for you, compare your options to find the best fit. Keep the following features in mind:
- Interest rates. These loans all come with fixed interest rates, but compare them loan to loan for ones that have similar features, to see how competitive the rates are.
- Upfront and ongoing fees. Will you be charged an establishment fee? Are there monthly or annual fees? These can add up over a period of five years, so check before you apply.
- Loan suitability. This is mainly true for secured personal loans, but check you will be able to finance what you need to with the loan. Ensure the loan amount is sufficient and you will receive the loan when you need it.
- Eligibility. Lenders set the minimum age, income, employment, credit and financial criteria that must be met in order for you to be eligible for the loan. Ensure you meet these before you submit your application.
Benefits and drawbacks of five-year fixed rate personal loans
- You have a generous repayment term to pay back your loan, making the loan suitable for higher amounts
- Your repayments will remain the same during the loan term
- Secured personal loan options are available, so you have the option of locking in a low rate for this period
- Longer repayment terms, while keeping your repayments lower, mean you pay more interest in total
- Your circumstances could change during the five years, which may make it difficult to meet your repayments
Frequently asked questions