Fixed rate
A fixed rate holds the interest rate and repayment constant for a set period, usually one to five years, after which the loan reverts to a variable rate.
Fixed rate, explained.
Fixing buys certainty of repayment. It costs flexibility: extra repayments are usually capped, offset accounts are limited or unavailable, redraw is often excluded, and exiting early triggers a break cost that can be large if market rates have fallen since you fixed.
A fixed rate is a decision about your plans and your tolerance for a moving repayment. It is not a forecast, and the people who fix well are the ones who would be comfortable if rates went the other way.
Tools that use this term.
What happens when my fixed rate ends?
Fixed rate ending calculator: estimate repayments if the loan moves to a variable rate when the fixed term ends.
OpenToolWhat will the repayments be?
Loan repayments calculator: principal and interest, interest-only for a period, weekly or monthly, with or without extra repayments.
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The Learn section is general information about lending in Australia. It does not take account of your objectives, financial situation or needs, is not credit assistance, and is not tax, legal or financial advice. Lender policies, government schedules and regulations change; check the current position with the relevant body or with us before relying on it.
