Features & Benefits
Why choose a fixed-rate loan?
A fixed-rate home loan gives you more certainty about your repayments during the fixed term. Expand each feature to learn more.
Repayment certainty
A fixed-rate home loan locks in your interest rate for a set period, usually between one and five years. Your repayments won’t change during this time, even if market interest rates increase. This can make it easier to budget and plan your finances with confidence.
Choose a fixed term
Most lenders offer fixed terms of 1 to 5 years, with some offering longer terms. Each term may have a different interest rate, so we’ll help you compare your options and choose the one that best suits your goals. When your fixed term ends, your loan usually reverts to a variable rate, although you may have other options available.
Rate Lock available
Some lenders offer an optional Rate Lock feature, which secures your fixed interest rate between loan approval and settlement. This can help if interest rates increase before your loan is funded. Rate Lock isn’t available with every lender, and fees and conditions apply.
Split your loan
A split home loan lets you divide your loan between fixed and variable interest rates. This gives you the certainty of fixed repayments on one portion while keeping the flexibility of a variable loan on the other. It’s a popular option if you want the benefits of both.
RATES & FEES
Fixed-rate home loan interest rates
Your actual rate depends on your loan amount, deposit, property type, repayment type, and individual circumstances.
| Fixed Term | Interest Rate | Comparison Rate* | Best For | Action |
|---|---|---|---|---|
| 1 Year Fixed | 6.24% | 6.17% p.a. | Short-term certainty | Enquire Now |
| 2 Years Fixed | 6.19% | 6.19% p.a. | Stability, less commitment | Enquire Now |
| 3 Years FixedPopular | 6.14% | 6.16% p.a. | Medium-term planning | Enquire Now |
| 5 Year FixedBest | 6.34% | 6.25% p.a. | Maximum certainty | Enquire Now |
| 10 Year Fixed | 7.24% | 7.24% p.a. | Decade lock-in | Enquire Now |
Disclaimer: The comparison rate is based on the example shown and may not include all fees and charges.
| Fixed Term | Interest Rate | Comparison Rate* | Best For | Action |
|---|---|---|---|---|
| Basic Variable | 6.64% | 7.24% p.a. | Short-term certainty | Enquire Now |
| 1 Year Fixed | 6.69% | 7.29% p.a. | Short-term certainty | Enquire Now |
| 2 Year Fixed | 6.49% | 7.09% p.a. | Stability, less commitment | Enquire Now |
| 3 Year Fixed | 6.29% | 6.89% p.a. | Medium-term planning | Enquire Now |
| 5 Year Fixed | 6.19% | 6.79% p.a. | Maximum certainty | Enquire Now |
Disclaimer:The comparison rate is based on the example shown and may not include all fees and charges. Different loan amounts, terms, and fees may result in different comparison rates.
Understanding Fixed Rates
What is a fixed-rate home loan?
A fixed-rate home loan is a type of mortgage in which the interest rate is locked in for a specified period, typically 1 to 5 years, though some lenders offer terms of up to 10 years.
During this period, your repayments will remain the same, no matter what happens to interest rates. Once this fixed period ends, your loan reverts to your lender’s standard variable rate, which may be higher or lower depending on market conditions. At that point, you can refix at the rates available at that time, switch to a more competitive variable rate, or refinance with another lender.
Is It Right For You?
Is a fixed-rate home loan right for you?
A fixed-rate home loan could be a good fit if any of these sound like you.
You’re buying your first home
Knowing exactly what your repayments will be can make settling into home ownership a little less stressful.
You like to plan ahead
Fixed repayments make it easier to budget, knowing your repayments won’t change during the fixed term.
You’re worried about interest rates rising
Locking in your rate means your repayments stay the same, even if interest rates increase.
You own an investment property
Predictable loan repayments can make it easier to manage cash flow alongside rental income.
You have a busy family budget
When household expenses are already changing, fixed repayments provide one less surprise.
You’re planning to stay in your home
If you don’t expect to sell or refinance anytime soon, a fixed-rate loan could be worth considering.
Not sure if it’s the right fit?
We’ll help you compare fixed, variable and split-rate home loans, so you can choose the option that best suits your goals.
FAQs
Your questions answered
Can’t find what you’re looking for? Speak with a broker about your options. There’s no credit check, no obligation, and in most cases, no broker fee.
Can I Switch From Fixed To Variable?
Yes, you can switch from a fixed rate to a variable rate, but be aware that there may be break fees or penalties for ending the fixed term early.
What Are Break Costs And How Are They Calculated?
Break costs are fees charged if you end your fixed-rate term early, by refinancing, repaying the loan or making extra repayments beyond the allowed limit. The fee depends on how long is left in your fixed term and how much interest the lender expects to earn. Use our Break Cost Calculator to get an estimate.
Are Offset Accounts Available With Fixed-Rate Loans?
Yes, some lenders offer full offset accounts with fixed-rate loans, while others may provide partial or limited offset features. It’s not available with every fixed product, so if an offset account is a must-have, a broker can help you find the right lender and loan combination.
What Is A Comparison Rate?
A comparison rate includes the interest rate plus most fees and charges relating to a loan, expressed as a single percentage. It helps you understand the true cost of a loan and how it can affect your financial situation.
For example, if your loan has an advertised interest rate of 6.13% but the comparison rate is 6.73%, the comparison rate includes additional costs such as setup fees and ongoing charges. This way, you can see the loan’s overall expense more clearly.
Can I Make Extra Repayments On A Fixed Loan?
Most fixed loans allow limited extra repayments (often up to 5% of the loan balance annually). Exceeding that limit may incur a prepayment fee, calculated using the break cost method.
What Happens When the Fixed Term Ends?
When your fixed term expires, your loan generally reverts to a higher variable rate. At that point, you can:
- Refix your rate for another term
- Switch to variable
- Refinance with a new lender
Always check the revert rate before you sign; it may be higher than your fixed rate.
Can I Refinance Or Sell During A Fixed Term?
Yes, but breaking the fixed term will likely incur break costs. Before selling or refinancing, check the fees and compare your options.
Can I Access Equity While On A Fixed Rate?
You may be able to apply for a further advance (also known as a top-up), but this is subject to your lender’s approval and policies. In some cases, a refinance might be more practical, even if break costs apply.
Can I Get An Interest-Only Fixed Rate Loan?
Yes. Investors often use these to keep initial repayments lower. Not all lenders offer interest-only options on fixed rates, so expert guidance is recommended.
Why Home Loan Experts
The bank gives you one rate. We help you find the best one.
Going direct to a bank
- One lender. One range of products.
- You do the research.
- You handle the paperwork and lender follow-ups.
- Your fixed rate ends, and it’s up to you to review your loan.
- Advice is limited to one lender’s products.
Using Home Loan Experts
- Compare fixed-rate options from 50+ lenders.
- We shortlist the loans that best fit your goals.
- We manage the process from application to settlement.
- We’ll check in before your fixed term expires and help you compare your next options.
- Recommendations tailored to your circumstances.