Should I fix my home loan in 2026?

Fixing wins only if the variable rate averages above your fixed rate over the fixed period. If you expect rates to fall or hold below the fixed rate, staying variable is usually cheaper — and keeps the flexibility of an offset account and unlimited extra repayments. Fixing buys certainty of repayments, not a guaranteed saving. Use the calculator with your own rate view to see the dollar difference and the break-even rate.

What are the downsides of a fixed rate loan?

Fixed loans usually limit extra repayments, rarely include a full offset account, and charge break costs if you repay early or sell during the fixed term — these can run into thousands. You also miss out if variable rates fall below your fixed rate. The trade-off is certainty: your repayment can't rise during the fixed period.

Can I split my loan between fixed and variable?

Yes. A split loan lets you fix part of your balance for repayment certainty and keep the rest variable for flexibility (offset, extra repayments). It hedges both ways — you benefit partly if rates fall and you're partly protected if they rise. Most lenders let you choose the split.

Fixed vs Variable Home Loan Calculator

Compare fixing your home loan against staying variable over the fixed period. See which is cheaper for your view on rates — and the break-even average variable rate that flips the answer.

Last verified: 5 May 2026

Should I fix my mortgage or stay variable?

Fixing only saves money if the variable rate averages above your fixed rate over the fixed term. Think rates will fall or hold lower? Variable is likely cheaper — and keeps your offset and extra repayments. Fixing buys certainty, not a discount. Source: ASIC MoneySmart.

Worked example. $600,000 loan, 5.79% fixed vs 5.99% variable over 3 years. If you expect the variable rate to drop ~0.5% over that time, staying variable comes out a few thousand dollars cheaper — and the break-even is when the variable averages 5.79%.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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Should I fix my mortgage or stay variable?

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