What is a fixed rate home loan?

A fixed rate home loan is one where the interest rate is locked in for a certain period (usually 1-5 years). At the end of this period you can either commit to another fixed rate or revert to a variable interest rate.

A fixed rate loan is useful for budgeting because your repayments are the same every time, but it also means you’ll have to pay the same interest rate, even if market rates drop.

Fixed rate home loans also usually come with less features than variable rate loans and you may not be able to pay your loan off early.

The exception to this is a Tic:Toc fixed rate home loan. Unlike most lenders, our fixed rate loans come with an offset account as standard. This lets you use your savings to lower the amount of interest you pay and reduce the overall cost of the loan.