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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

Data indicated here is updated regularly
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Loan purpose
Offset account
Loan type
Repayment type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier, P&I)
2.14%
2.46%
$395
$0 p.a.
80%
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.
ANZ Breakfree Package Home Loan - 2 Year Fixed (Owner Occupier, P&I)
2.29%
4.02%
$0
$395 p.a.
90%
This 2 year fixed ANZ Breakfree Package rate comes with package discount and product bundle.
Newcastle Permanent Building Society  Premium Plus Package Fixed Rate - 1 Year Fixed (Owner Occupier, P&I)
2.39%
3.85%
$0
$395 p.a.
95%
$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 - 2 Year Fixed Rate (Owner Occupier, P&I) New Customers Only
2.59%
4.30%
$600
$8 monthly ($96 p.a.)
95%
Get a partial offset account and the option to make interest-only repayments.
UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier, IO)
2.29%
2.47%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
Heritage Bank Advantage Package - 1 Year Fixed (Owner Occupier, P&I) New Customers Only
2.59%
3.34%
$0
$350 p.a.
95%
Get a partial offset account and flexible repayments with this package loan.
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier, P&I)
2.54%
3.98%
$595
$0 p.a.
95%
This loan allows you to make up to $25,000 in extra repayments during your fixed rate term.
UBank UHomeLoan - 3 Year Fixed Rate (Owner Occupier, IO)
2.29%
2.44%
$395
$0 p.a.
80%
A competitive 3 year fixed rate with no ongoing bank fees.
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Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2020 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

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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

Pros

  • 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.

Cons

  • 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.

More guides on Finder

Home Loan Offers

Important Information*
Logo for Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)
Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)

Up to $3,000 refinance cashback. A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.

Logo for St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)

Up to $4,000 refinance cashback. A competitive variable rate loan from St.George. Refinancers borrowing $250,000 or more can get $4,000 cashback (Other terms, conditions and exclusions apply).

Logo for Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I
Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I

A competitive variable rate mortgage for owner occupiers $0 application and $0 ongoing fees. This interest rate falls over time as you pay off the loan.

Logo for UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate

Take advantage of a low-fee mortgage with a special interest rate of just 2.49% p.a. and a 2.49% p.a. comparison rate.

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