Switch to Fixed or Split
The trade-offs between rate certainty and flexibility.
Fixed rates give repayment certainty; variable rates give flexibility. Many homeowners find the sweet spot in a split — fixing enough of the loan to sleep at night, keeping a variable portion for offset access and unlimited extra repayments.
Things to consider
- Fixed loans usually cap extra repayments (often $30k or less over the fixed period) — check before you fix a large amount.
- Break costs on a fixed loan can be substantial if rates move against you — the shorter the fix, the smaller the potential break cost.
- A rate lock during application can protect you from rate moves before settlement, usually for a fee.
- Fixed-rate loans often don't allow a full offset — a split can preserve offset benefits on the variable portion.
Related equity uses
Three more ways homeowners commonly put usable equity to work.
Unlock an Offset Account
How offset accounts may reduce interest without changing the loan.
Access a Redraw Facility
How redraw works and what accessing it may mean for your loan.
Remove Lender's Mortgage Insurance
When LMI may apply, and how a changing LVR can affect it.
Explore whether using your home loan for this purpose may be appropriate — a Mortgage Freedom Review can help you understand the potential effect on repayments, total interest and your estimated mortgage-free date before you decide.
Results are estimates based on the information provided and stated assumptions. Savings, rates, approval and earlier repayment are not guaranteed. Credit approval, valuation, lender criteria, fees and product terms apply. Refinancing may not be suitable for everyone.
Submitting an initial enquiry for a Mortgage Freedom Review does not itself lodge a loan application. If a credit report or formal application may be required later, the responsible mortgage broker will explain the proposed step and obtain the necessary authority or consent.