What is Fixed Rate?
A fixed rate is an interest rate locked in for a set period — typically 1, 2, 3 or 5 years. During that window, your repayment doesn't change regardless of market rate movements. At the end of the fixed period, the loan reverts to variable (or can be re-fixed).
Why it matters for you
Fixed rates offer certainty but limit flexibility. Extra repayments are usually capped (often $10K–$30K per year), offset features are limited, and breaking early triggers break costs. Fix only the portion where certainty matters — use a split loan for the rest.
Last updated: April 2026