Fixed rate home loans which allow additional repayments

Take advantage of a home loan that gives you peace of mind with a fixed interest rate and at the same time, flexibility with additional repayments.

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Fixed rate home loans which allow extra repayments can be a great way to enjoy the security of a fixed rate with the ability to get ahead on your loan by making extra repayments. This type of home loan offers a fixed interest rate and also allows extra payments. The fixed rate of interest offered by the lender can range from one to five years. During this period your repayments will remain unchanged, helping you to budget with little difficulty.

If you find your circumstances change during this fixed period, such as an increase in your income or an unexpected bonus or inheritance you are also able to make additional repayments with this type of loan. These fixed rate loans as stand-alone products and also as part of packages, and they’re offered by banks, building societies, credit unions, and other lenders.

Compare fixed rate home loans with an additional repayments feature

Name Product Interest Rate (p.a.) Comp. Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
UBank UHomeLoan Fixed
2.31% p.a.
$0 p.a.
Limited time offer.
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees. Apply by 30 June 2021 and settle within 90 days to get this low rate.
Newcastle Permanent Building Society  Premium Plus Package Fixed Rate
3.84% p.a.
$395 p.a.
$2,000 refinance cashback
Enjoy a competitive rate with no application fee for this package loan. $2,000 cashback for eligible refinancers borrowing $250,000 or more.
Heritage Bank Fixed Rate Home Loan
4.23% p.a.
$8 monthly ($96 p.a.)
Get a fixed rate for two years and borrow up to 95%.
UBank UHomeLoan Fixed
2.35% p.a.
$0 p.a.
A one year fixed rate offer with no ongoing bank fees.
Heritage Bank Advantage Package Fixed
3.15% p.a.
$350 p.a.
Get a partial offset account and flexible repayments with this package loan.
Newcastle Permanent Building Society Fixed Rate Home Loan
3.94% p.a.
$0 p.a.
This loan allows you to make up to $25,000 in extra repayments during your fixed rate term.

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How do these loans work?

Fixed rate home loans with additional repayments are similar to regular fixed rate loans but differ because of the ability to make additional repayments. These extra payments can be made usually up to a limit set by your lender.

In most cases, if you make additional repayments above the set limit, or repay the fixed rate loan in full, you may incur additional break costs for ‘early repayment’. Check the outline of fees with your lender before you start to make additional repayments.

How to compare fixed rate loans that let you make additional repayments

  • Interest rates. As the rate could be fixed for up to five years, you’d want to make sure it’s competitive.
  • Fixed rate term. The terms offered by lenders usually range from one to five years, so choose a term that works for you.
  • Fees. You may be charged a fee to make additional repayments, or to use other features of the loan. Check to see what fees are applicable with the product you’re considering, both ongoing and one-off fees, and how much they’re likely to cost you.

Things to be careful of

While these loan products offer flexibility through additional repayments, they still may come with certain restrictions and fees that you should familiarise yourself with before you apply. Check to see if there is a limit on the amount of additional repayments you can make, or if you’ll be charged a fee each time you make a repayment. There may also be separate fees for paying back your loan early, especially if you manage to pay it back during the fixed rate period. You should check these fees and charges before you apply.

Pros and cons


  • A fixed rate helps you to budget for the initial period of your loan. This is great for those who are just starting out on a home loan, such as first home buyers.
  • Additional repayments can help reduce the cost of your loan, and help you pay your loan back sooner.
  • You can lock in a competitive fixed rate for a period of up to five years, letting you take advantage of competitive rates for a considerable period, and protecting you against rate rises.


  • The amount of additional repayments may be limited with certain loans
  • You may be charged fees for making additional repayments, or early repayment fees if you pay your loan back earlier than expected
  • If the RBA cuts rates you might be paying a rate higher than most other variable loans

Frequently asked questions

What fixed rate periods are available?

The available period differs between lenders, although most lenders offer fixed rate terms ranging between one and five years, with some lenders offering periods as little as six months and as many as 10 years.

How do I make additional repayments?

You usually make additional repayments the same way you make your regular home loan repayments, but this should be confirmed with your lender.

What happens if I break my fixed rate?

Break costs will apply, you should check these costs with your lender.

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