Fixing the rate of your home loan
A fixed rate is one that remains unchanged for the duration of your fixed-rate period, regardless of what’s happening in the market.
Switching to a fixed rate home loan gives you the security of knowing how much your repayments will be (and limits your exposure to rate rises). Get your head around the different rate options available with our home loans.
If you would like to fix your current ME home loan (or a split portion of your loan), here are some things you need to know.
Considerations for switching to a fixed loan
Firstly, you need to feel confident that fixing the interest rate on your loan is the right move for your financial situation. If you’re not sure, it’s a good idea to get independent financial advice.
If you want to go with a fixed rate, remember it’s possible that interest rates could fall below the rate you’ve fixed your loan at. And you’ll be locked in for the fixed period. See all our fixed home loan rate options.
What is a break cost?
The fees associated with breaking your fixed rate home loan contract are called ‘early repayment charges’ (can also be known as ‘break costs’ and 'prepayment fees'). The fees charged can vary greatly depending on the circumstances of the loan and can be significant.
You can find out more about break costs here
Breaking or changing your fixed rate contract
Keep in mind that making certain changes to your fixed rate home loan will not be possible without first breaking your fixed rate contract. These changes include:
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extending your loan term
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changing your home loan product type
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redrawing funds
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requesting a change to a variable interest rate
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paying out your loan
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topping up your loan
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increasing your repayment
If you wish to make any of these changes, your loan will need to revert to the variable rate applicable at the time you want to make the change, and you may need to pay a fee.
Making additional payments during a fixed rate term
If you find yourself with extra cash, you’ve got the option of making additional payments,
Where the fixed rate period started when your loan was a CompleteME or EconoME home loan, you can make up to $10,000 in extra payments every year during the fixed-rate period.
Where the fixed rate period started before your loan was changed to a CompleteME or StandardME home loan during the transition to ME Go, you can make up to $30,000 in extra payments during the fixed-rate period.
If you want to pay more than this amount, a break cost may apply. This fee will be calculated at the time your request is received.
Other fees associated with fixing your loan
There is no fee to fix a CompleteME Home Loan. A $300 switch fee applies to fix an EconoME Home Loan.
Getting started
If you would like to fix your home loan, give us a call on 13 15 63 to make it happen.