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Fixed Rate Loans

Plan your financial future with security and certainty.

A fixed rate home loan allows you to lock in your interest rate for a period of 1-5 years. In some cases, you can lock your interest rate for even longer. Once fixed rate period has expired, it will convert to variable a rate.

Whether or not you decide to fix your home loan’s interest rate depends on your personal circumstances.


  • The interest rate is fixed for a set period of time, giving protection against possible interest rate increases.
  • During your fixed term, you’ll know exactly how much your repayments will be. Making budgeting a whole lot easier.
  • During times of very low interest rates, fixing your loan can work to your advantage, because you can retain a low rate for a fixed term even if the rates rise steeply.
  • Rate Locking guarantees the fixed rate against rate rises prior to settlement. Fees apply.
  • Interest rates on fixed rate loans may be higher than variable rate loans at the time of the loan. Usually, the longer the fixed loan term, the higher the interest rate.
  • Possibility of expensive break costs if, during the fixed interest rate period, borrowers:
    • Repay loan in full;
    • Switch to another product or loan type;
    • Make additional repayments;
    • Sell the property; or
    • Seek further funds.
  • The Fixed Rate does not apply until the loan is drawn down. This means if rates rise between when you applied for the loan and the loan settles, you may end up with a higher rate than you expected. This can be overcome by ‘Rate Locking’ your loan at application (fees apply).
  • Limited or no ability to make additional repayments during the fixed rate period.
  • Most lenders will not allow you to have an offset account with a fixed rate loan so there is no opportunity to save on interest. Where offset facilities are available, they will usually only be available on a partial basis, with a 100% offset account being available through some lenders only.
  • You would not be able to take advantage of reductions in interest rates if rates fall.
  • Loan increases are not available. You would need to take out a separate loan should you require additional funds.

You have applied for a Fixed Rate home or investment loan as it presents as a suitable option for your needs. You complete and submit the Application hoping that the rate you have applied for won’t change by the time it takes to settle your loan. Because our economic conditions are constantly changing, lenders rates are constantly changing also. 

A Rate Lock can help you protect the interest rate you applied for when you submitted your application.

Most lenders charge a Rate Lock Fee, which may be a percentage of the loan amount whilst others might charge a flat fee, it all depends on the lender. While this can be a substantial sum, certain lenders may not charge it or will even waive it in some cases.

Our final tip: Make sure you note the expiry date of your rate lock, which usually lasts 90 days – If settlement still hasn’t taken place when your rate lock expires, it will need to be renewed with an additional fee.

If opting for a fixed rate home loan, it is worth chatting with our dedicated team so that you can choose the right lender and Rate Lock option for you.

Most borrowers lock in their rate as soon as they submit their home loan application. This is smart thinking because the lender can declare a rate increase at any time prior to settlement. Once announced, you cannot lock in the previous rate. So, if you don’t want to miss out on the lowest fixed rate available, we recommend considering Rate Lock.