Fixed rate home loans that allow for additional repayments

Since the RBA confirmed at its November meeting that the cash rate could rise earlier than originally planned, many borrowers have turned their sights on fixed rates to protect their finances from rising interest rates.

Although increased financing costs had already led to an increase in long-term fixed interest rates, the average 4-year rate of the lenders we observed is still well below the average variable interest rate – 2.75% pa compared to 3.11% pa at the time of writing.

However, unlike floating rate loans, fixed options are often limited in their functions. So, if you are looking for a fixed rate loan that allows you to make free and unlimited additional repayments, the job may be done for you.

Fortunately, there are fixed options that aren’t too strict with their limits. Below we’ve rounded up a few to help you get ahead with your mortgage while enjoying the security of a fixed rate.

Newcastle Special Permanent Loan with Fixed Rate
  • Free additional repayments up to $ 25,000 per year
  • 2.59% pa (3.65% pa comparison rate *) with 4-year terms
  • Eligible Refinancers can receive $ 2,000 cashback (Terms & Conditions apply)

Newcastle Permanent Special Fixed Rate Home Loan allows you to make additional repayments of up to $ 25,000 annually. So it is sure to be appreciated by those who want to repay their loan early. A compensation account is also available. So if you have more money on hand but don’t want to use it on your mortgage, you can still use it to save interest.

Additionally, if you refinance a loan of at least $ 250,000 (

Well balanced home loans
  • Free additional repayments up to $ 20,000 per year
  • 2.79% pa (2.28% pa comparison rate *) with 4-year terms
  • Offset account available for $ 10 per month

The Qudos Bank Fixed Rate Home Loan allows for additional repayments of up to $ 10,000 annually, as well as a repayment option in case you think some of those additional repayments are better in your pocket. And for an additional $ 10 per month, you can use an offset account to save interest.

The available interest rates are also quite attractive at 2.79% pa (2.28% pa comparative rate *) with 4-year terms. However, there are some fees that you need to budget for, such as: For example, the filing fee of $ 250, the attorney’s fee of $ 385, the settlement fee of $ 150, and the dismissal fee of $ 300. Penalties will also apply for making more additional repayments than allowed.

Tic: Toc Fixed Home Loan
  • Free additional repayments up to $ 20,000 per year
  • 2.59% pa (2.12% pa comparison rate *) with 4-year terms
  • Offset account available for $ 10 per month

Find out more

Tic: Toc is backed by Bendigo Bank and Adelaide Bank and is an online lender that launched in 2017. This loan allows borrowers to make up to $ 20,000 in additional repayments each year, and the free repayment feature means you can access these funds when you need them later. An offset account is also available, but costs an additional $ 10 per month. While this loan is relatively toll-free, there is a discharge fee of $ 325 and a service fee of approximately $ 60 for online billing (or $ 80 to $ 200 for paper billing).

Qudos Bank Fixed Rate Home Loans
  • Free additional repayments up to $ 10,000 per year
  • 2.59% pa (2.73% pa ​​comparison rate *) with 4-year terms
  • No upfront or ongoing fees

Those who want to pay off their mortgage faster while taking advantage of competitive rates will appreciate this offer from Qudos Bank. Prices are 2.59% pa (2.73% pa ​​comparison rate *) for 4-year terms and you can pay up to an additional $ 10,000 each year (multiple payments result in a penalty). Unfortunately, you don’t have access to a redemption feature, which means these additional repayments cannot be accessed if you need them later. You also need to be aware of the $ 275 discharge fee.

For other options currently available, see our fixed rate home loan comparison page.

* ATTENTION: This comparison price is only valid for the given example (s). Different amounts and terms lead to different comparison rates. Costs such as repayment fees or early repayment penalties as well as cost savings such as fee exemptions are not included in the comparison price, but can influence the cost of the loan. The benchmark rate shown is for a secured loan with monthly principal and interest payback for $ 150,000 over 25 years.

** The initial monthly repayment numbers are only estimates based on the specified interest rate, the loan amount entered, and the term entered. Prices, fees and charges and thus the total cost of the loan can vary depending on the loan amount, loan term and loan history. The actual repayments will depend on your individual circumstances and changes in interest rates.

^ See Mozo Experts Choice Home Loan Awards information

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