Fixed Loan

Fix the interest rate on your loan to protect yourself from official RBA rate rises. You can fix your whole loan or part of it (making the other part variable). The rate can be fixed for 1-5 years, after which it reverts back to the Advantage Loan rate. At the time of converting, your interest rate will be same as the current interest rate for customers that obtained an Advantage Loan at the time you first obtained your MyRate loan.

This loan may be suitable if...

You believe that variable rates will go up (see note below for more details)
You are an investor wanting set repayment amounts for a specific period.
You would like to protect part of your loan from rising rates by combining a fixed loan and an Advantage (variable) loan.

A note about Fixed Rates

Also see our guide
to fix or not to fix?

People are often not sure whether to fix their rate or not. Whilst we cannot give advice, we believe borrowers should be aware of the facts behind fixed rates.

A fixed rate will probably save you money if the variable rate rises above it during the fixed term (one needs to also consider the fees and features of each product). Thus, your potential savings are tied to the gap between fixed and variable rates.
Even if the variable rate overtakes the fixed rate towards the end of the fixed term, if it was substantially lower for most of the fixed term, you will probably not have saved money by getting a fixed rate.
Example: our 3 year fixed rate is currently 7.63%, the Advantage Loan rate is 5.88%. For the fixed rate to save you money, rates will need to increase by more than 1.75% and remain there for much of the next 3 years.