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Should You Fix Your Interest Rate Right Now?

April 23, 2026

Is fixing your rate the right move right now? 
Wondering if fixing your interest rate is the right move right now? The honest answer… it depends. Fixed rates typically move ahead of variable rate increases, this means that by the time we start seeing variable rates rise, fixed rates have often already adjusted.

So, when borrowers look to fix after rate increases begin, it can sometimes be too late to secure a highly competitive longer-term fixed rate.

When could a fixed rate make sense for you?
Fixing can be worth considering if even one or two rate increases would significantly impact your:

• Budget
• Cash flow
• Lifestyle
• Overall financial comfort

In these situations, the certainty of knowing exactly what your repayment will be can outweigh chasing the lowest possible rate.

What to be aware of..
Fixed rates aren’t for everyone, and there are some important things to consider:

• Limited or no offset accounts
• Redraw is often not available
• Extra repayments are usually capped
• Break costs may apply if you change or exit the loan early

Compare repayments before making decisions. 
You can use our repayment calculator to compare variable vs fixed scenarios and see what this means for you. 

How to switch to a fixed rate. 
If you do decide to fix, the process is generally straightforward. In most cases you will follow the below steps: 

• Contact your existing lender
• Choose a fixed term (1-5 years)
• Review and sign the documents they provide

Not sure what’s right for you?
This is where we can help. If you’d like to talk through your options, run the figures, or get a second opinion before making a move, feel free to book a phone  call with our team.