Fixed Rate

What a fixed rate fixes

A fixed rate keeps the home loan's interest rate unchanged for an agreed period. That period may be only part of the remaining loan term. A two-year fixed period on a 25-year loan does not mean the debt is repaid after two years.

ASIC Moneysmart's home loan guide explains the distinction between fixed, variable and split loans. The Split Loan example shows how to estimate repayments separately for each portion. Fixing a rate can make budgeting more predictable, but it does not freeze every household cost or guarantee that the loan will cost less than a variable alternative.

Example: keep two dates on the calendar

Suppose a loan starts on 1 October 2026 with a two-year fixed period and a 25-year loan term. Under those illustrative dates, the fixed period ends in 2028 while the scheduled loan end is in 2051. Those dates describe different obligations. Check the lender's actual expiry and maturity dates rather than calculating them from an advertising label.

At expiry, the revert rate matters. An estimate then needs the outstanding balance and remaining term, not the original balance and a new full loan term. Use the mortgage repayment calculator to compare stated assumptions.

Restrictions and early exit costs

Extra repayment limits, offset access and other features depend on the product. Do not assume every fixed loan allows the same annual extra payment or excludes every offset feature. Read the loan's conditions before making a lump-sum payment.

A fixed loan may carry a break fee if changed or repaid early. ASIC's switching guide lists break fees alongside other switching costs. Ask the lender for a written payout and fee estimate for the proposed date. A general calculator cannot infer a break fee from the original rate and today's advertised rate alone.

The refinancing checklist helps organise those figures. Any comparison should also distinguish a lower monthly repayment from a lower total cost.

General information only, not financial or credit advice, a loan quote or a recommendation. Product terms and lender assessments vary. Confirm costs and conditions with the lender.

Last updated: 16 September 2026.