Fixed home loan rates explained

A fixed rate refers to a loan where your interest remains the same (fixed) for a specific period. This means your minimum monthly repayments won’t change while your loan is fixed. At NAB, we offer fixed periods of between one and five years.

This differs from a variable home loan rate, which can change periodically due to fluctuations in interest rates. When this occurs, your minimum monthly repayment can increase or decrease.

I­­s fixing your home loan rate right for you?

While choosing what type of home loan rate is right for you depends entirely on your financial circumstances, there are some benefits and limitations to fixed periods you should consider. We understand it’s a big decision to make, so if you need help deciding, feel free to contact us on 13 78 79.

Package customers

If you have a home loan package, it’s important to understand the benefits you will receive when your loan has a fixed rate. One of the benefits of a package is a rate discount. However, the discount on a fixed rate is less than the discount on a variable rate. Plus, a fixed rate loan may incur economic costs if changed or removed from the package.

If you’re unsure about fixing your existing packaged home loan, our home loan experts can help. Call us on 13 78 79.


The main benefit of a fixed rate home loan is certainty around your repayments.

  • Your minimum repayments won’t change during the fixed period.
  • You will be protected against interest rate rises for the duration of the period.
  • You will have the ability to budget knowing your repayments.
  • You will have an option to Rate Lock for a period of up to 90 days during a home lending application.
    For more information on Rate Lock please refer to Rate Lock fact sheet (PDF, 96KB), opens in new window.


While having peace of mind knowing your interest rate won’t change during the fixed period, it’s also important to understand that fixing your home loan rate does have some limitations.

  • You won’t benefit from any variable interest rate reductions during the fixed period.
  • Fixed rate home loans don’t give you access to an offset account.
  • Redraw is not available during your fixed rate period.

Understanding economic costs

If you choose to make changes to a home loan account during a fixed rate period, you may be required to pay for what is known as “economic costs”.

You may be charged these costs depending on the changes you make. These costs may apply in the following circumstances.

  • You change the interest rate for the loan. For example, this can happen if you switch to a different product or remove a fixed rate loan from your package.
  • You change your repayment amount or repayment type – for example where you switch early from interest only to principal and interest repayments.
  • You repay the loan in part or in full before the end of the fixed rate period.
  • The total owing is due because the loan is in default.

Economic costs can be significant and vary on a daily basis. Learn more about economic costs before fixing your home loan.

How to convert your loan to a fixed rate

You can fix your loan from the NAB app in just a few clicks. Here’s how:

  • Login to the NAB app (make sure you’re using the latest version).
  • Select your home loan account and tap Manage.
  • If you’re eligible to fix your loan in the app, you’ll have the option to select Fix your loan.
  • Follow the steps to change your interest rate.

See our step-by-step instructions on fixing the interest on your home loan.

You can also re-fix your home loan in the app if you have an eligible home loan with a fixed rate expiring in 45 days or less. Here’s how:

  • Login to the NAB app (make sure you’re using the latest version).
  • Select your home loan account and tap Manage.
  • If eligible, you will notice that your fixed rate is expiring and you will have an option to either let it roll over to a variable rate or you can select Fix your interest rate and follow the steps to re-fix your interest rate.

Fix your joint home loan

If you have a joint loan, the second person on the account will need to review the change. They’ll need the latest version of the NAB app, a personal login and will need to review the change within 48 hours. The request expires after 48 hours. To review the change, the second person will have to:

  • Login to the NAB app (make sure you’re using the latest version).
  • Select your home loan account and tap Manage.
  • Review the change waiting approval and select Approve or Decline.

See our step-by-step instructions on viewing and accepting changes on joint loans.

What happens when your fixed rate home loan expires

You have a few options to consider when your fixed rate expires.

Learn what you can do when your fixed rate expires.

Contact us for home loan related queries

This is how you can get in touch.

Start a conversation with a banker

  1. Log into either NAB Internet Banking or the NAB app.
  2. Tap on the message icon.
  3. Type ‘speak to a person’ in the conversation window.

Call us

Speak to a home loan expert about a new or existing home loan.

Monday to Friday, 8:00am to 7:00pm (AEST/AEDT)
Saturday to Sunday, 9:00am to 6:00pm (AEST/AEDT)

13 78 79

Book an appointment

Make an appointment to see us at your nearest branch, ask a mobile banker to come to you or ask us to call you back.

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