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90 Marine Terrace Fremantle, WA, 6160

the fixed interest rate conversation

If there’s one conversation that makes me snore, it’s that one about interest rates. 

But because so many people are asking me about them, let’s talk.

Not the whole lot, just fixed rates.

First, a quick overview.

– “fixing” means to lock in an interest rate for a given period of time, usually 1-5 years

– At the end of the period, the price of the money will usually revert to the prevailing variable unless a decision is taken otherwise

– Some people like them because of the certainty of a set repayment amount that doesn’t vary for the term of the fixed period

– Banks like them because they get a fixed income from a non-current asset on the balance sheet with pena​​​​​​​​​​​lties payable by the customer if they break early

– There are typically restrictions over how much you are able to pay over the minimum – i.e. $5-10,000 in extra repayments each year

A tiny handful of lenders have come up with creative ways to keep the % the same, yet offer an offset account option of 40-100% depending on the lender

Usually, I’m dead against fixing. That said, we went nuts with the bounce in rates in 2021.

Right now, for certain people, fixing can make sense. 

  • Higher loan-to-value situations like first home buyers especially
  • New families
  • Those seeking extra confidence and certainty
  • Those borrowing large amounts and want to hedge their bets and split the lending into variable and fixed

So, depending on what your aims are, fixing can make some sense.

Here’s what’s got me excited and why we’re doing a tonne of fixed business right now:

  • We’ve got fixed options for 2-3 years at 5.09%
  • We’ve got an option with a 100% offset account 
  • This same option offers $20,000 extra annual repayments (typically $5-$10kpa)

Look, if you’re in the decision-making hotseat, there’s a conversation to be had because the fixed rates are lower than most variable rates for the offer above. 

Also, the 100% offset is a very unique type of loan. In essence, you’ve got no restriction on how much of the principal you can offset, all the while having a guaranteed minimum monthly payment. Pretty cool. 

From experience, this offer will not hang around for long and is only available exclusively through us and our broker network. 

Go >>HERE to request your free 10-min intro call to find out if you’re eligible. 

P.s. If you’re going directly to a lender for some emotional reason, you are going to lose out, pay more and stress way more. We’ve got options from 31 lenders, plus we make your life easy by managing the transaction from beginning to end. Don’t listen to me, read some of our 158 5-star reviews instead.


Brodie Brown

Professional Mortgage Broker