Fixed rates are available on all product types.
Fixed interest rates will not change during a specified period term. Terms of one to five years are available. During an interest only period, the fixed term must be less than or equal to the interest only period.
A fixed interest rate can also be requested after the loan has settled at the fixed interest rate advertised at that point in time. For more information, see reviewing your client’s variable and fixed interest rates.
Considerations for fixed rates
Prior to considering a fixed rate, it is important your client understands how fixed rates may impact other features of our home loan product, including offsets and redraw capability.
- Your client can’t fully fix an offset home loan. For an offset home loan, they must have at least $20,000 of their loan on a variable interest rate
- An offset transaction account can’t be linked to a fixed loan account. This is because offset benefits are not available while the linked loan account is on a fixed interest rate
- Your client can’t access redraw while their account is fixed. Extra payments they’ve made while their interest rate is fixed are only available at the end of their fixed rate period.
For construction loans
Fixed rates are not available for a construction account in the construction period. However, fixed rates are available for any other loan accounts within the facility.
Lock a fixed rate
Fixed rates are automatically locked at formal approval with no fee applicable. The rate is locked in for the life of the application including if the formal approval is extended by an additional 90 days.
There is no option to fix rates before formal approval or for longer than 180 days from formal approval.
