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Fixed rates are in a state of evolution which will mean greater flexibility for homebuyers, Mortgage House is claiming.

In the wake of the non-bank lender trimming almost a full percentage point from its fixed rates within the Advantedge range, MD Sarah Roberts said the advances in the fixed rate space are bound to provide customers with more peace of mind.

The new Mortgage House feature is a free Rate Lock for up to 60 days from issuance of contracts; where in the event of the fixed rate increasing before the loan settles customers will have locked in the lower interest rate.

And, if it were to happen in reverse, the customer gets the new lower rate.

"The most recent innovation with regards to fixed loans is the ability to 'toggle' between offset accounts," said Ms Roberts.

"Where our customer has decided to split their loan - part fixed, part variable - an offset account is created for each component allowing them to be in control and toggle between offset accounts to ensure they are always offsetting the account with the higher interest rate."

Effective today, for all new business, Advantage fixed rates start from 6.4% p.a. for a 2 year term.

Furthermore, the Advantage range includes a 100% offset account, allows redraws during the fixed term period and accepts additional repayments of up to $20,000 per annum.

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