Get a competitive deal!

There are three secrets to making sure you getting a great deal on a fixed rate loan.

Unlike variable loans, fixed interest loans need to be carefully chosen because you are committed to that lender for the fixed rate period.

Here’s what you need to take into account when choosing your loan.

Our popular articles on fixed rate loans


3 years fixed

Is locking in for three years worth your while?


5 years fixed

When should I fix for five years?


10 years fixed

Discounts are available but is there a benefit?


Should I fix?

Our essential guide to fixing your loan.


Interest rates

Special offers from our panel of 30 Australian lenders.


Break fees

How much can I repay without being charged?

Know when to fix

Choosing the right loan is a great start but what is the point if you lock yourself in when rates are high only to see the reserve bank cut interest rates?

By fixing when the economy is running smoothly and interest rates are cheap you will protect yourself from credit crises and volatility.

Unfortunately, most Australians fix when rates are high because they fear that rates are going to go higher!

This is not out of a rational decision to look at the overall term of the loan or what rates are likely to average over that entire period.

Remember, 3 or 5 years is a very long time!

Choose the right lender

Many people just go straight to their bank and try their best to negotiate a good rate.

Unfortunately this strategy is flawed because, unlike variable rates, the major banks and other lenders have completely different fixed rates!

Why is there so much variation? Because each lender has their own opinion about the likely direction of interest rates in the future and so price their loans with different rates.

A mortgage broker can negotiate on your behalf to get a great offer from one of the lenders on their panel.

Know if you should even fix at all!

Of those who apply for a fixed rate loan, many of them would be better off with a variable rate.

Why is it that some people are better off with variable rates?

Well, fixed rates tend to have high exit fees called break fees or do not allow you to make large additional repayments.

A fixed loan is like a fixed contract: if you break it then it is going to cost you a small fortune!

Do not fix your rate if you are planning to:

  • Sell your property,
  • Make a large lump sum repayment,
  • Refinance your home loan,

Flexible fixed rates (splitting the loan to be half fixed and half variable) may help if you are planning to make extra repayments but this will not help if you are selling or refinancing as you would still incur large exit fees.

Find the cheapest fixed rate loan

Our mortgage brokers have specialised software that can quickly find and compare the cheapest fixed rate mortgages.

Please call us on 1300 889 743 or enquire online and we will complete a needs analysis, work out which lenders you qualify with and give you several options to choose from.

Will interest rates go up or down?

You may notice that the media is constantly reporting that interest rates are either going to shoot into the stratosphere or plummet down to record lows.

They regularly ask economists to make a predictions on interest rates because these articles grab the attention of most Australians.

The truth is that nobody knows what will happen with interest rates in the future, not even the Reserve Bank.

In the past, we have seen many predictions on interest rates which have turned out to be incorrect.

If you choose to fix your interest rate, then please base your decision on sound economic logic or on your own personal preferences, not media reports!

Please keep in mind that if you fix your home loan and then interest rates drop, you cannot switch back to a variable rate without paying a large exit fee.

What is "rate lock"?

If you apply for a fixed rate home loan and the bank changes their fixed rates between the time that you apply for the mortgage and the time that your loan is advanced, then you will get the new fixed rate.

You can pay a fee which ranges from $395 to $695 or 0.15% of the loan amount to lock in your rate at the time of application. That way you are protected from rate rises.

You cannot rate lock a pre-approval and rate lock is only available for a maximum of 90 days (depending on the lender).

I want a discounted fixed rate

The good news is that due to the high competition in the fixed rate market, there are some incredible discounts and special offers promoted by Australian banks.

In fact, some lenders occasionally run special discounts where they are giving you such a low rate that they hardly turn a profit!

Call us on 1300 889 743 or enquire online to find out what discounted fixed rates are available now!

New flexible fixed rates!

Traditionally, fixed rate loans lack the flexibility offered by other home loan products. Paying out the loan early or switching will both cost you dearly in break fees.

However, with new products coming out in the market, some of our fixed rate loans now offer features such as:

  • Extra payments without penalty
  • Redraw facilities
  • 100% offset facilities
  • Low or no monthly account keeping fees
  • Interest only repayments

It is important to remember that fixing your rate means commitment for a period beyond anybody’s prediction.

To some extent it is a gamble but at the very least fixed rate loans provide insurance against interest rate rises that might put your home at risk.

Interest in advance home loans

Want to get some great tax deductions this financial year?

Pre-pay your interest in advance on a fixed rate loan!

We know lenders that have the most competitive interest rates and can offer you professional discounts as well.

This loan type is suitable for property investors and those refinancing.

Get independent fixed rate advice

We recommend that you always keep your financial goals and priorities in mind when making a decision on your home loan and seek independent financial advice before fixing the rate on your home loan.

Call us on 1300 889 743 or enquire online if you would like a quote on a fixed rate home loan or if you would like to find out if fixed rates are suitable for your situation!

  • Ricardo

    I want to free my cashflow for a certain time being for my business. Will fixing my repayments be a solution for me?

  • Hi Ricardo,

    If the fixed rate is lower than your current variable rate, you could try fixing it to free up some cash. Else a better way would be to refinance the loan(fixed or variable) to a lower rate, as it will increase your loan term to 30 years, reducing the monthly payments you are currently making.

  • Tobi Kups

    What does it mean from the bank’s perspective if the fixed rate is higher than the variable rate and vice versa?

  • Hi Tobi,

    As a general rule if the current fixed rate is higher than the current variable rate then the money market may think that rates are likely to rise in the future. If the fixed rates are lower then this indicates that the market believes rates may fall.

    It’s more complicated than that of course, and nobody can predict the future. So fixing is always somewhat of a gamble.

  • playa

    What about fixed rates on investment mortgages? Can this be done? What are some of the rates on offer here?

  • Hi playa,
    Yes, this can be done. We have a page on fixed rate investment loans and it includes some compeititve rates on offer currently as well as additional info that you may find helpful. Please check it out here:

  • Hannam

    I am a freelancer and I earn all my income through freelancing work. What documents will I be required to provide in order to get a home loan?

  • Hello Hannam,

    Lenders will require you to provide at least 3 of your most recent bank statements and 2 years’ tax returns. Your tax returns will help prove that your income is consistent and ongoing. This is why most lenders require freelancers to have been self employed for at least 2-3 years. Please check out the freelancer mortgage page for more information:

  • Shaw

    What do people typically use to get an idea of what future fixed rates can be?

  • Although it’s not possible to accurately predict the future direction of interest rates, there are several indicators that people use to help them make an informed decision. Please check out our Forecasting Fixed Rates page to learn about all this:

  • Ryan

    Few years back, my brother was half way through his 5 year fixed rate and wanted to rent out his house because he had to move because of his job. He changed the home loan to investment and paid expensive break fees. I don’t have a home loan yet but I am inclined to think I can be in a similar position so is there any way this can be avoided?

  • Hey Ryan,
    Yes, any changes while in a fixed rate contract will lead to break fees being applicable. However, there are some cases where you may be able to change the home loan to an investment loan and not have to pay break fees. However, please note that this will requires a reassessment and the interest rate you’ll be paying will likely increase. If you’d like to get clarification on this and get a lot of useful info on your home loan as well, please feel free to contact one of our fixed rate home loan specialists on 1300 889 743. Or you can simply enquire online and one of us will contact you instead:

  • Dhadkun

    I want to fix my loan and keep my repayments as interest only. Do these fixed term and interest only term need to be of the same time period?

  • Hi Dhadkun,
    Generally, fix and interest only (I/O) period should match, it’s okay to have longer I/O period than fix but the higher fix period is not acceptable (This is because the interest rate will have to be revised, once the Interest Only term matures and a rate change on a fixed loan will incur a break cost). Max I/O period that can be done in a time is 5 years in general. However, there are few exceptions, where you can have higher fixed loan period than the IO period however this is very rare. Hope this helps :)

  • Noah

    I’m considering fixing my home loan. I want to know the costs associated if I were to break the fixed loan period before it ends.

  • Hi Noah,

    Break costs are fees charged by lenders when you make extra repayments beyond the allowable amount or switch lenders or products during a fixed rate term. For example, your lender may allow you to make up to $500 per month in extra repayments before you’ll be charged a break cost. With a variable rate loan, you can make as many extra repayments as you would like.

    Banks don’t always disclose their break fees or how they will be calculated. You can use our break costs calculator to get an estimate: The banks change their policies from time to time, so you should always check with your lender just to be sure. It’s worth thinking carefully about your future financial flexibility before locking in a fixed interest rate to avoid having to pay break costs.

  • Arthur

    After a 5 year fixed interest rate only period ends and you change to principal and interest repayment, do you still have the option of fixing the interest rate or does it have to be variable?

  • Hi Arthur,
    Yes, you can potentially fix the loan (P&I). Alternatively, you can extend your interest only period. You can find more information about extending your interest only term here: