Understanding fixed interest rates

Fixed interest rates are rates that won’t change during a specified period or ‘term’. Terms of one to five years are typically available for:

• Owner occupied or Investment loan purposes,
• Principal and interest or interest only repayment types, and
• Basic Home Loan Facility and Offset Home Loan Facility* products**.

*Fixed rates are available on an Offset Home Loan Facility only where at least one variable home loan account (minimum limit $20,000) also exists so the offset accounts can be linked to an account.

** Only available for home loan accounts with a BSB starting with 182.

Generally, fixed rates are available for both new and existing customers. Our current fixed rates are available on our website.

Prior to considering a fixed rate, it’s important you and your customer understand how fixed rates may impact other features of our home loan product, including:

• Offset Home Loan Facility, offset accounts and fixed rates
• Fixed rate terms and interest only terms
• Additional payments during fixed rate term
• Accessing redraw during fixed rate term

Changes to a fixed rate home loan account may incur break costs, which could be significant. Examples of changes may include:

• changing the loan purpose
• changing the repayment type
• reducing the limit of the home loan account (including closing or discharging the home loan account).

Either in your aggregator’s software or ApplyOnline, you’ll need to select the appropriate home loan product and the fixed rate term (e.g. Basic Home Loan Fixed 2 Year). Once you input the loan purpose and repayment type, our current advertised rates for that product will be reflected on the loan application once submitted.

Note, if your application is for a 100% fixed home loan, you’ll need to apply for a Basic Home Loan Facility only.

If you’re applying for a portion of the home loan to be fixed, you’ll need to add loan splits within the application in ApplyOnline to create additional home loan accounts in the home loan facility.

In the Offset Home Loan Facility example below, there are two home loan accounts – one has a variable interest rate and the other a 2 year fixed interest rate.

For more information on how to apply for multiple home loan accounts for your customer’s home loan application, see Selecting products and features in ApplyOnline.

The type of application will determine when a fixed rate is applied:

• New home loan applications (e.g. APP-123456) - fixed rates are applied at formal approval and are valid until the formal approval expires, with no fee applicable.
• Principal increase applications (e.g. PIA-123456) - fixed rates are only applied at settlement and may be subject to change between formal approval and settlement. 

There is no option to lock fixed interest rates. Macquarie also doesn’t have a rate lock fee. Fixed interest rates are confirmed at formal approval and settlement for new home loan applications and principal increases, respectively.

Fixed rates are not available for a construction home loan account during the construction period. However, fixed rates are available for any other home loan accounts within the facility.