Fixed Rate

An interest rate locked in for an agreed term, usually 1 to 5 years.

A fixed-rate home loan locks the interest rate for a defined period (typically 1, 2, 3 or 5 years) regardless of RBA cash rate movements. After the fixed period ends the loan reverts to a variable rate — often the lender's standard variable rate, which can be much higher than the original fixed rate. Break costs apply if you exit a fixed loan early.