Should I fix my rate right now?

It depends on your risk tolerance and market outlook. If you prefer certainty in your budget and believe rates may rise, fixing can provide peace of mind. If you want flexibility or believe rates may fall, variable may be better.

What are break costs?

Break costs apply when you exit a fixed rate early (by selling, refinancing, or paying off the loan). They can be substantial - sometimes tens of thousands of dollars - as banks calculate the cost of you breaking the contract.

Can I make extra repayments on a fixed rate?

Most fixed rate loans allow $10,000-$20,000 per year in extra repayments without penalty. Exceeding this triggers the extra repayment limit and may attract break costs.

Fixed vs Variable Calculator

Calculator

Compare fixed and variable rate options to find the best choice for your situation

Free to useNo data storedAI insightsUpdated: February 2026

Choosing between fixed and variable rates is one of the biggest decisions when getting a home loan. Fixed rates offer certainty but less flexibility. Variable rates can move up or down but allow extra repayments without penalty. Our calculator helps you compare both options.

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Real-World Examples

First Home Buyer Wanting Certainty

Amit has a $520,000 loan and is offered 5.9% fixed for 2 years vs 6.4% variable.

Inputs:

loanAmount:520,000loanTerm:30fixedRate:5.9fixedTerm:2variableRate:6.4

Fixed saves $130/month for 2 years ($3,120 total). If Amit sells within 2 years, break costs typically exceed these savings.

Investor with Flexibility Needs

Chen has a $680,000 investment loan. Fixed is 6.2%, variable is 6.5%. Plans extra repayments.

Inputs:

loanAmount:680,000loanTerm:30fixedRate:6.2fixedTerm:3variableRate:6.5

Fixed saves $1,020/year, but Chen's $20,000/year extra repayments can only go to variable. Consider a split loan.

Frequently Asked Questions

Glossary

Fixed Rate

An interest rate that stays the same for a set period (1-5 years), regardless of market changes.

Variable Rate

An interest rate that can change at any time based on market conditions and lender decisions.

Break Cost

The penalty charged for exiting a fixed rate early. Calculated based on the bank's cost to break the contract.

Revert Rate

The rate your loan moves to after the fixed period ends. Often higher than advertised variable rates.

Related Tools

Explore Split Loan Options

Get the best of both worlds by splitting fixed and variable.

Compare Live Rates

See current fixed and variable rates from across the market.

Negotiate Your Rate

Get tips on negotiating a better rate with your lender.

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026