Buying or refinancing a home can feel overwhelming with so many loan options and interest rate changes in 2025–2026. Understanding fixed home loans can save you thousands and give peace of mind.
In this article, we explain everything you need to know about fixed home loans. You’ll learn how fixed rates work, who they suit, and strategies to secure the best deal. We cover key features, break costs, split loans, and tips for timing your fix.
Working with a trusted mortgage broker Brisbane can help you navigate options, compare lenders, and save money on your mortgage.
Let’s dive in
What Is A Fixed Rate Home Loan?
A fixed rate home loan is a type of mortgage where your interest rate stays the same for a set period — usually between 1 and 5 years. Unlike variable loans, your repayments won’t rise or fall if market rates change. This gives you predictable repayments and peace of mind, especially when interest rates are uncertain.
How Fixed Rates Work
When you lock in a fixed rate, your lender agrees to keep your interest rate unchanged for a chosen term.
- Most Australians choose 1-, 3-, or 5-year terms, depending on their goals.
- During this term, your repayments remain the same regardless of RBA or market fluctuations.
- Choosing the right term depends on your financial goals, income stability, and property plans.
- Once that period ends, your loan usually reverts to a variable rate unless you decide to refix.
Fees and Limitations
While fixed rates provide stability, there are some restrictions:
- Extra repayments: Most lenders limit how much extra you can pay each year.
- Redraw: Some banks restrict or charge fees for withdrawing extra repayments.
- Break costs: Ending a fixed loan early usually incurs a penalty, calculated on interest differentials.
Factors that influence fixed rates:
- RBA expectations — If the Reserve Bank of Australia is expected to cut rates, lenders may lower fixed rates in advance.
- Wholesale funding costs — The cost for banks to borrow money affects the rates they offer to you.
- Market competition — Lenders often adjust fixed rates to attract borrowers.
Who Fixed Rates Are Good For
Fixed rates suit borrowers who value certainty and stability. Consider a fixed loan if:
- You worry about interest rates rising in the near term.
- You have a short-term reduction in income expected.
- You want predictable monthly repayments to budget effectively.
- You plan to stay in your home for the entire fixed term.
Example: Fixing a $300,000 home loan at 4.50% for 5 years ensures your repayment stays the same, even if market rates rise.
When Fixed Rates Might Not Suit You
Fixed rates may not be ideal if you need flexibility or expect falling interest rates. Avoid fixing if:
- You want to make large extra repayments on your loan.
- You plan to sell or refinance your home during the fixed term.
- You need access to offset or redraw accounts for cash flow.
- You believe interest rates may drop, so you could miss out on savings.
Fixed Interest Rates In 2025–2026: What’s Changing?
Fixed interest rates are shifting again in 2025–2026, and if you’re thinking about buying or refinancing, now’s the time to pay attention. Understanding how rates have changed — and where they’re heading — can help you lock in the right deal for your situation.
A Quick Look Back: The Rise and Fall of Fixed Rates
During 2020–2021, fixed home loans were incredibly popular. Record-low interest rates encouraged thousands of Australians to fix their loans for 1 to 5 years, locking in certainty during uncertain times.
However, when the Reserve Bank of Australia (RBA) began aggressively lifting the cash rate in 2022 and 2023, the picture changed dramatically. Fixed loans became less attractive, and by late 2023, fewer than 5% of new borrowers were choosing them.
This was one of the sharpest shifts in borrowing preferences we’ve seen in years.
What’s Different in 2025–2026
Now, the tide is turning again. With inflation easing and the RBA hinting at possible rate cuts in 2026, lenders are starting to trim their fixed rates.
- In early 2025, several major lenders — including Commonwealth Bank and Westpac — dropped their 2-year fixed rates below 5%.
- Smaller lenders and non-banks soon followed, offering short-term fixed deals to attract new borrowers.
This shift signals growing confidence that interest rates have likely peaked and could trend lower over the next 12–18 months.
What This Means for Borrowers
For borrowers, this is a promising sign — but it also requires careful strategy.
- Good news: Falling fixed rates can mean lower, more predictable repayments and greater peace of mind.
- However: If the RBA cuts the cash rate significantly in 2026, borrowers locked into longer fixed terms may miss out on cheaper variable rates.
That’s why many borrowers are now considering shorter fixed terms, such as 1–2 years, to balance certainty with flexibility.
Pro tip: A split home loan (part fixed, part variable) can give you the best of both worlds — steady repayments on one portion and flexibility on the other. We cover more of this in a later section.
Why Lenders Are Trimming Fixed Rates
Lenders don’t adjust fixed rates at random. Their decisions are based on factors such as:
- RBA cash rate expectations — what the market predicts the RBA will do next.
- Wholesale funding costs — how much it costs lenders to source money from global markets.
- Competition — when one big bank cuts rates, others often follow to stay competitive.
As a result, we’re seeing increased competition among lenders heading into 2026, which is excellent news for homebuyers and refinancers alike.
Fixed vs Variable Rates: The 2020–2025 Trend
Here’s how fixed and variable rates have shifted over the past five years:
Year | Average 2-Year Fixed Rate | Average Variable Rate | Key Trend |
2020 | 2.30% | 2.60% | Record-low rates; fixed loans surged |
2021 | 2.10% | 2.45% | Fixed popularity peaked |
2022 | 3.70% | 3.85% | RBA begins rate hikes |
2023 | 5.10% | 5.35% | Fixed loans drop below 5% of market |
2024 | 4.80% | 5.20% | Early signs of fixed rate cuts |
2025 | 4.95% | 5.25% | Lenders competing as RBA rate cuts loom |
(Indicative data based on industry averages; actual rates vary by lender and borrower profile.)
What It All Signals
The message is clear — we’re entering a new cycle.
- Borrowers now have more options and better pricing than they did just a year ago.
- Fixed loans are becoming attractive again, especially for those seeking budget stability amid economic uncertainty.
- But with rate cuts on the horizon, flexibility remains key.
How To Get The Best Fixed Rate In 2026
Finding the best fixed rate home loan requires strategy, timing, and expert guidance. Here’s how to maximise your savings.
1. Use a Mortgage Broker
Working with a broker like Hunter Galloway gives you access to:
- Multiple lenders and products you won’t easily find on your own.
- Expert guidance on comparing interest rates, fees, and features.
- Negotiation support for special discounts or offers.
2. Negotiate Cashback and Loyalty Discounts
Some lenders offer cashback bonuses or loyalty discounts for new or returning customers.
- Ask about introductory rates, cashback incentives, and fee waivers.
- Even a small discount can save thousands over the life of your loan.
3. Time Your Fix Strategically
Fixing your rate at the right moment can make a huge difference.
- Before RBA meetings: Lenders may offer special rates ahead of potential cash rate changes.
- During lender specials: Banks often release short-term deals for competitive advantage.
- Avoid chasing “headline” offers that hide higher revert rates or fees.
Avoid Common Traps
Be aware of pitfalls that can cost you money:
- Small banks’ revert rates after the fixed period may be higher than advertised.
- Extra fees for redraws or breaking a fixed term early.
- Misleading advertised rates that exclude ongoing fees or features.
Fixed vs Variable Home Loan Rates Comparison
Choosing between a fixed and variable home loan rate can significantly affect your repayments, flexibility, and overall costs. Understanding the differences helps you make smarter financial decisions.
Key Differences Between Fixed and Variable Rates
Feature | Fixed Rate | Variable Rate |
Interest Rate | Locked for a set period (1–5 years) | Can move up or down with RBA cash rate changes |
Repayment Predictability | Monthly repayments stay the same | Repayments fluctuate with interest rate changes |
Flexibility | Limited extra repayments and redraw | High flexibility, unlimited extra repayments and redraw |
Cost if Rates Fall | No benefit from rate decreases | Repayments can reduce if RBA cuts rates |
Cost if Rates Rise | Protected from increases | Repayments increase as rates rise |
Best For | Homeowners who value stability | Borrowers seeking flexibility and potential savings |
Borrower Example: Fixed vs Variable
Consider an $800,000 home loan:
- Fixed Rate Option (3-year average 6.19%)
- Repayments: ~$4,880/month
- Predictable, safe from interest rate rises
- Ideal for homeowners who want certainty
- Variable Rate Option (average 6.75%)
- Repayments: ~$5,040/month initially
- If RBA cuts rates by 0.5%, repayments drop to ~$4,840/month
- Offers flexibility for extra repayments or redraw
How to Decide
- Choose fixed if you want stability and protection against rising rates.
- Choose variable if you want flexibility and the chance to benefit from future rate cuts.
- Many borrowers consider a split loan to get the best of both worlds.
How To Choose The Right Fixed Rate Features
Banks offer a variety of fixed rate features, which can feel overwhelming. But knowing the key options helps you choose the right loan.
Let’s break down the most important features, what they do, and who benefits from them.
1. Rate Lock
Fixed rates change daily. Without a rate lock, the rate you applied for could increase by settlement. A rate lock secures your interest rate for an extra fee. For example, if you apply at 6%, the bank guarantees you pay 6% at settlement. This protects you from market fluctuations.
2. Extra Repayments
Some lenders allow extra repayments on fixed loans. Limits range from a few thousand dollars to 5% of the original loan. Extra repayments reduce interest over time. However, exceeding your limit may trigger fixed break costs. Always confirm your lender’s rules before paying extra.
3. Redraw Facility
Redraw allows you to access extra repayments you’ve made. But not all lenders treat this the same way. With some fixed loans, withdrawing funds may break your fixed contract and incur large fees. Use redraw carefully if you expect to need funds.
4. Interest in Advance
This feature is ideal for property investors. It allows you to prepay interest before 30 June, creating tax deductions in bulk. Some lenders offer discounts up to 0.20% on your fixed rate. It’s a smart strategy for cash flow management and tax planning.
5. Fixed Rate Offset Accounts
Offset accounts reduce the interest you pay. Most banks allow partial offsets on fixed loans. A few lenders offer 100% fixed rate offsets, letting you fully reduce interest while keeping access to your funds.
6. Fixed Rate Construction Loans
Some lenders allow a fixed rate on construction loans. This gives certainty over repayments while your home is being built.
7. Split Loans
A split loan combines fixed and variable portions. This gives stability on part of your loan while retaining flexibility on the rest. It’s an effective strategy for borrowers who want the best of both worlds.
Pro Tip: Always check which features are available for your chosen lender. Speak to a Hunter Galloway mortgage broker to tailor the right fixed rate loan for your needs.
Should You Lock In Now Or Wait For RBA Rate Cuts?
Many borrowers face a tough decision: lock in a fixed rate now or wait for potential RBA cuts. Let’s break it down.
Why Fixed Rates May Fall Slower Than Expected
Fixed home loan rates don’t always follow RBA cash rate changes immediately.
Lenders set rates based on:
- Wholesale funding costs – the cost of sourcing money from markets.
- Risk premiums – extra charges to cover potential rate changes.
- Competition – banks match each other’s fixed offers, but with a lag.
Even if the RBA cuts rates, lenders may reduce fixed rates more slowly than expected.
What Economists and Lenders Predict for Late 2025–2026
Most experts forecast gradual rate reductions in late 2025 and into 2026.
Some lenders may offer temporary discounts or specials to attract new borrowers. However, the timing and size of cuts remain uncertain, meaning waiting can carry risk.
Economists also warn that external factors—like inflation trends, global markets, and RBA decisions—could influence rates in early 2026. Borrowers should prepare for slight fluctuations even if rates continue to trend lower.
Scenario Comparison: Lock In Now vs Wait for RBA Cuts (2025–2026)
Option | Interest Rate | Estimated Monthly Repayments* | Pros | Cons |
Lock Now | 5.99% fixed | ~$4,580 | Guaranteed rate for 3 years, predictable repayments, protects against future rate rises | Might miss out if rates drop in 2026 |
Wait 6–12 Months | Potential 5.6% fixed | ~$4,470 | Could benefit from slightly lower rates | Risk of rates rising instead, uncertain timing, repayments may increase |
Hybrid Approach (Split Loan) | 5.99% fixed on 80%, 6.25% variable on 20% | ~$4,520 | Balance of stability and flexibility, can pay extra on variable portion | Slightly higher complexity, variable portion exposed to rate changes |
*Assumes $800,000 home loan over 30 years, principal & interest.
Short-Term Fix vs Long-Term Fix (1-year, 3-year, 5-year)
Why You Might Choose a 1-Year Fixed Rate
A 1-year fixed rate is ideal if you’re unsure about future interest rates or planning to sell or refinance soon.
It often comes with the lowest short-term rates and gives you the flexibility to review your loan within a year.
However, it also carries higher risk if rates rise after your fixed period ends. You’ll need to refinance more frequently, which can mean extra effort and costs.
Why You Might Choose a 3-Year Fixed Rate
A 3-year fixed rate is the most popular choice among homeowners. It provides a good balance between stability and flexibility.
You’ll enjoy predictable repayments for three years and typically reasonable break costs if your plans change.
On the downside, the rate is slightly higher than a 1-year fix, and some lenders may limit extra repayments or redraws.
Why You Might Choose a 5-Year Fixed Rate
A 5-year fixed rate suits borrowers who want long-term certainty and peace of mind.
It protects you from interest rate spikes and guarantees stable repayments for half a decade.
However, it usually comes with higher fixed rates and less repayment flexibility. If you sell or refinance early, you could face significant break costs.
Pro Tip: A mortgage broker like Hunter Galloway can help tailor your fixed-rate strategy based on your loan amount, goals, and RBA outlook — ensuring you get the right balance between stability and savings.
What Happens When Your Fixed Term Ends
When your fixed term ends, your loan typically reverts to the lender’s standard variable rate. This is called the revert rate.
Revert rates are usually higher than your fixed rate. Without action, your repayments can increase significantly, sometimes by hundreds of dollars per month.
How to Avoid Payment Shocks
You don’t have to accept the revert rate. You can negotiate or refinance before your fixed term expires. Taking action early helps you maintain control over repayments and potentially secure a lower interest rate.
3-Step Checklist Before Your Fixed Rate Expires
- Check your lender’s revert rate – Know what your repayments will be if you do nothing.
- Compare refinance options – Look at competitor rates, broker deals, and potential savings.
- Lock in a new deal 90 days before expiry – Most lenders allow rate negotiation or a new fixed term before your current term ends.
Expert Tip: Contact your mortgage broker or lender three months before expiry. This gives time to compare rates and secure a deal without rushing.
Pros And Cons Of Fixed Home Loans
Fixed home loans provide stability but come with trade-offs. Understanding the advantages and disadvantages will help you make smarter borrowing decisions.
Advantages of Fixed Home Loans
- Repayment Stability – Your monthly repayments remain the same for the fixed period. This protects you from unexpected interest rate rises.
- Budgeting Certainty – Knowing your exact repayments makes it easier to plan household finances. You can confidently forecast your expenses without surprises.
- Protection from Market Volatility – Fixed rates shield you from sudden changes in the RBA cash rate. This reduces financial stress during uncertain times.
- Potential Rate Discounts – Some lenders offer loyalty or long-term fixed rate discounts. This can save you money over the life of the loan.
Disadvantages of Fixed Home Loans
- Limited Flexibility – Extra repayments are often capped, limiting how quickly you can pay down your loan. This can restrict your financial freedom.
- Fixed Break Costs – Ending your fixed rate early usually triggers penalties. These can be costly if your circumstances change unexpectedly.
- No Benefit from Rate Cuts – If market rates fall, your repayments won’t decrease. This can leave you paying more than variable rate borrowers.
- Fewer Features – Features like full offset accounts or redraw access may be restricted. This can limit how you manage and access your funds.
Pro Tip: Always compare lenders’ fixed features and break costs. A mortgage broker like Hunter Galloway can guide you to the best solution.
Common Mistakes Borrowers Make With Fixed Rates
Choosing a fixed home loan can provide stability, but many borrowers make avoidable mistakes. Understanding these pitfalls can save you thousands and make your loan work better for you.
- Fixing for Too Long – Locking in a fixed rate for too many years can limit flexibility. You might miss out on lower rates if the RBA cuts rates in the future.
- Paying Break Fees Unnecessarily – Breaking a fixed loan early can result in high break costs. Planning ahead and understanding these fees prevents costly surprises.
- Not Reviewing Rates Before Expiry – Many borrowers forget to check their loan before the fixed term ends. Rates may revert to the lender’s standard variable rate, increasing repayments.
- Ignoring Split-Loan Flexibility – Split loans allow part of your loan to remain variable while fixing the rest. Ignoring this option may mean missing out on interest savings and flexibility.
- Overlooking Extra Repayment Limits – Fixed loans often cap extra repayments. Exceeding these limits can trigger penalties, even if you want to pay down your loan faster.
- Focusing Only on Headline Rates – The advertised rate isn’t always the cheapest. Fees, comparison rates, and features like offset accounts can make a big difference.
- Forgetting Offset Account Benefits – Some fixed loans limit or exclude offset accounts. Missing this can reduce interest savings and your ability to access funds.
- Ignoring Market and RBA Trends – Not considering how interest rates may change can cost you. Timing your fix or split strategy carefully helps manage risk.
- Skipping Professional Advice – Navigating fixed vs variable rates, split loans, and features alone can be overwhelming. A mortgage broker ensures you choose the best option for your needs.
Example - My story:
“I fixed a few years ago worrying that interest rates would shoot up.
And they did, for a few months.
…And then they went down by a few per cent.
Consequently, my repayments were HUGE and breaking the fixed rate cost thousands of dollars.
Worse yet, I ended up putting the property on the market and selling it – during the fixed rate period.”
So if you aren’t 100% sure that you will be holding the property over the medium to longer term, then a fixed rate might not be for you.
Your mortgage broker can model repayment scenarios using loan calculators and RBA forecasts to help you find the ideal balance.
Bonus: Can I Make Extra Repayments Without A Fixed Rate Penalty?
The good news is it is possible, depending on which bank you are with.
We have broken down the major banks, the name they used for their fixed rate home loan, fixed break cost and the maximum amount you can make in extra repayments.
Bank | Product (Fixed Rate Home Loan Name) | Fixed Break Cost | Maximum Extra Repayments Allowed |
Fixed Rate Wealth Package Home Loan | Yes – break costs apply if you repay early | Up to $10,000 per year | |
Fixed Option Home Loan | Yes – break costs apply | Up to $30,000 per year | |
Fixed Rate Home Loan | Yes – early repayment costs apply | Up to $5,000 per year | |
Choice Package Fixed Rate Home Loan | Yes – break costs apply | Up to $20,000 per year | |
Fixed Rate Home Loan | Yes – early repayment costs apply | Up to $10,000 per year | |
Fixed Rate Home Loan | Yes – break fees apply | Up to $500 per month | |
Fixed Rate Home Loan | Yes – early repayment costs apply | Up to $10,000 per year | |
St George Bank | Fixed Rate Home Loan | Yes – break cost applies if repaid early or switched | Up to $30,000 total during the fixed term (or $10,000 per 12 months for older loans) |
Bankwest | Fixed Rate Home Loan | Yes – break and administration fees apply if repaid early | Typically up to $10,000 per year, varies by product |
Note: The actual amount you will pay in break costs depends heavily on a few factors (loan balance, how much time is left in the fixed-rate period, changes in wholesale interest rates). However, for Australian borrowers, break costs on large loans ($600k–$800k) can typically range between $10,000–$25,000, depending on rate differences and time left on the fixed term.
These policies are always changing.
We’d suggest calling your lender or speaking with our expert Mortgage Brokers to confirm the current policy on 1300 088 065.
Fixed Break Cost Example Australia - Case Study
Scenario
- Borrower: Sarah
- Loan Type: 3-year Fixed Rate Home Loan
- Lender: Commonwealth Bank (CBA)
- Original Loan Amount: $650,000
- Fixed Interest Rate: 5.00% p.a.
- Time Remaining on Fixed Term: 2 years
- Current Market (Wholesale) Rate for Remaining Term: 3.50% p.a.
- Amount Being Repaid Early: Full balance ($650,000)
Step 1: Determine the Rate Difference
When the loan started, Sarah’s fixed interest rate was 5.00%.
The current wholesale rate for the same remaining term is 3.50%.
That means the rate difference is 1.50% (0.015).
Step 2: Multiply by the Remaining Term
Multiply the rate difference by the remaining term of the loan:
0.015 × 2 years = 0.03 (or 3%).
Step 3: Apply to the Loan Balance
Next, apply this percentage to the loan balance:
$650,000 × 0.03 = $19,500.
Step 4: Discount for Present Value
Banks apply a present value discount because the loss occurs over future years.
After discounting, the estimated break cost is approximately $18,700.
Explanation
When Sarah fixed her rate at 5%, the bank locked in funds at that rate.
Now that wholesale market rates for the remaining two years have dropped to 3.5%, the bank earns 1.5% less if she exits early. The $18,700 break cost compensates the lender for this loss.
Essentially, the bank is recovering the income it expected to make had Sarah stayed on the fixed rate for the full term. If she breaks early, the lender must reinvest that money at a lower rate, resulting in a financial shortfall.
Break costs can also vary depending on how often repayments are made and how the lender calculates the discount rate. While the example gives a general idea, each bank uses slightly different formulas and discounting methods.
If market rates rise instead of fall, the situation can reverse — the bank may not charge any break cost, or in rare cases, the borrower might even benefit.
Bonus: Split Home Loans - The Best Of Both World
What Is a Split Home Loan?
A split home loan lets you divide your mortgage into two portions — one fixed and one variable. This setup gives you the best of both worlds: the security of fixed repayments and the flexibility to take advantage of rate changes.
For instance, if you have a $400,000 loan, you might choose to fix $200,000 and keep $200,000 variable. You decide the ratio — whether it’s 70/30, 60/40, or 50/50 — depending on your financial goals and risk appetite.
How Split Loans Work in Practice
You make one combined repayment, but it’s split across the two portions:
- The fixed part stays at the same rate for the chosen term (e.g. 2–5 years).
- The variable part moves with market interest rates, meaning your repayments could go up or down over time.
You can still make extra repayments, use offset accounts, or access redraw — but usually only on the variable side.
Pros and Cons Of A Split Home Loan
Pros | Cons |
Stability & flexibility combined – You can enjoy predictable repayments on one side while benefiting from potential rate drops on the other. | More complex to manage – Having two loan portions means dealing with separate terms, rates, and repayment rules. |
Access to offset/redraw features – The variable portion often lets you use offset accounts or make extra repayments to save on interest. | Break fees still apply – You may face penalties if you refinance or pay off the fixed portion early. |
Reduced risk exposure – Splitting your loan helps protect you from full exposure to sudden interest rate hikes. | Offset accounts may be limited – Most lenders only link offset accounts to the variable side of the loan. |
Easier transition between fixed and variable – Great for borrowers who want flexibility without fully committing to one type. | Not always the cheapest option – Split loans can attract slightly higher comparison rates or additional fees. |
How to Choose the Right Split Ratio
There’s no one-size-fits-all ratio — it depends on your risk tolerance and financial goals. Some common split setups include:
- 50/50: Balanced approach between security and flexibility.
- 70/30 fixed-heavy: Ideal if you value certainty and protection from rate hikes.
- 30/70 variable-heavy: Best for those wanting to benefit from potential rate drops.
FAQs About Fixed Home Loans In Australia
Are fixed home loan rates going down in 2025?
Most lenders are reducing short-term fixed rates as RBA rate cuts are expected later in 2025, giving borrowers opportunities to lock in lower repayments.
Can I refinance before my fixed term ends?
Yes, but break fees may apply. A mortgage broker can calculate if refinancing still saves money based on your loan balance and remaining term.
What’s the best fixed term length right now?
Many borrowers choose 1–2 year fixed terms for flexibility, while longer terms (3–5 years) provide stability if you want predictable repayments.
Why choose a fixed home loan over a variable loan?
Fixed loans offer predictable repayments and protection from rising interest rates, making budgeting easier and reducing financial stress during uncertain market conditions.
Can I make extra repayments on a fixed loan?
Some lenders allow limited extra repayments on fixed loans without penalties. Always check your loan terms before making additional payments.
What happens when my fixed term ends?
When the fixed term expires, the loan usually converts to the lender’s standard variable rate unless you refinance or fix it again, so planning ahead is essential.
Are fixed loans suitable for property investors?
Yes, fixed loans help investors manage cash flow by providing predictable repayments, especially when rental income may fluctuate.
How do I decide between a short-term and long-term fixed loan?
Short-term fixed loans offer flexibility if rates drop, while long-term fixed loans provide repayment certainty. Your choice depends on your risk tolerance and financial goals.
Do fixed home loans include offset or redraw facilities?
Some lenders allow offset accounts or redraw on fixed loans, but features are often limited compared to variable loans. Check your lender’s terms carefully.
Can fixed home loans save me money if rates drop?
Fixed loans provide certainty rather than savings if rates fall. If you expect rates to decrease, consider combining fixed and variable options or a shorter fixed term to benefit from potential reductions.
Key Takeaways: Is A Fixed Rate Right for You?
Choosing a fixed home loan can provide certainty and financial peace of mind, especially in a market where interest rates may fluctuate. Locking in a rate now ensures your repayments remain predictable for the fixed term, making budgeting easier if you have a tight or fixed household budget.
However, fixed loans are not one-size-fits-all. If you want both stability and flexibility, consider a split loan, which allows part of your loan to remain fixed while the other portion benefits from potential rate reductions. This approach helps you hedge against rate changes while still enjoying some predictability.
Always shop around and compare lenders, because even small differences in rates — for example, 6.49% vs 5.89% — can save you thousands of dollars over the life of the loan. Pay attention to features like extra repayments, offset accounts, and break fees, as these can significantly affect the true cost of your fixed loan.
In short, a fixed home loan can be a smart choice for borrowers seeking security, stability, and peace of mind — especially when paired with careful planning, professional advice, and a comparison of multiple lenders.
Next Steps and Getting Your Fixed Rate Home Loan
Our team at Hunter Galloway is here to help you buy a home in Australia. Unlike other mortgage brokers who are just one person operations, we have an entire team of experts dedicated to help make your home loan journey as simple as possible.
If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.
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