What happens to my fixed rate loan when the RBA changes rates?

Nothing changes during your fixed term. Your rate and repayments remain exactly the same regardless of RBA decisions. This is the key feature of fixing — and the key limitation.

Can I make extra repayments on a fixed rate loan?

Most fixed rate loans allow some extra repayments — typically up to $10,000–$20,000 per year. Making repayments above this limit may trigger break costs.

What is a comparison rate and should I use it to compare fixed and variable loans?

A comparison rate includes fees and charges in addition to the interest rate, giving you a more complete picture. It's useful for comparing like-for-like loans but has limitations because it uses a 25-year loan term and $150,000 loan size as its base.

Should I fix my rate when rates are falling?

Fixing when rates are falling locks in today's rate and protects against scenarios where cuts don't continue. But if rates fall further, you miss the benefit. Generally, the closer you believe rates are to their floor, the more attractive fixing becomes.

How do I know what break cost I'll face if I exit my fixed loan?

Your lender can provide a break cost estimate upon request. This is calculated daily based on current wholesale market rates and your remaining loan balance and term.

Is it better to fix for 1, 2, 3, or 5 years?

Shorter fixed terms give you more flexibility to reassess sooner. Longer fixed terms provide certainty for longer but lock you in. In Australia, 2-year and 3-year fixed terms are the most popular.

Fixed vs variable rate home loans: what the numbers actually show

Fixed or variable? We run the actual numbers across multiple scenarios to help Australian borrowers make a data-driven home loan decision.