Fixed vs variable, side by side.
We don't fix rates to beat the bank — we fix to buy certainty. The banks price their view of where rates are heading straight into every fixed rate, and over the long run the people who fixed have usually ended up worse off than those who stayed variable (COVID-era rates near 1% being the rare exception).
So this isn't about getting ahead of the market — it's about protecting your downside. It matters most if you're stretched toward the top of your borrowing capacity, or you simply value knowing what your repayments will be.
Use the calculator below to model a few rate rises and slide the split to suit you. We'd usually suggest keeping a portion variable, so you keep the flexibility to make extra repayments, start debt recycling, or sell without break costs if things change.
"Fixing is a certainty play, not a rate win."
Your current loan
Choose a fixed rate
Choose your split
Use the slider to choose how much of your loan you'd like to fix. The remainder stays on your variable rate.
Your repayment comparison
Splitting would save you money per month at current rates.
- Amount
- $400,000
- Rate
- 5.89%
- Monthly
- $2,369.99
- Amount
- $400,000
- Rate
- 6.14%
- Monthly
- $2,434.32
What if variable rates rise?
See how your proposed split protects you compared to staying fully variable. Each increase assumes a 0.25% rise to the variable rate — your fixed portion stays locked in.
Your split vs 100% variable
The gap between the two lines is the monthly certainty fixing buys you if rates rise.
| Scenario | Variable | 100% Variable | Your Split | You Save |
|---|---|---|---|---|
| Current rates | 6.14% | $4,868.65 | $4,804.31 | $64.34 |
| +1 rise (+0.25%) | 6.39% | $4,998.81 | $4,869.39 | $129.42 |
| +2 rises (+0.50%) | 6.64% | $5,130.42 | $4,935.20 | $195.23 |
| +3 rises (+0.75%) | 6.89% | $5,263.45 | $5,001.71 | $261.74 |
| +4 rises (+1.00%) | 7.14% | $5,397.85 | $5,068.91 | $328.94 |
Important things to consider
Fixed rate limitations
- Limited extra repayments — Most fixed rate loans cap additional repayments at $10,000–$20,000 per year. Exceeding this may incur fees.
- No offset account — Fixed rate loans typically do not come with an offset account, meaning your savings won't reduce the interest you pay on the fixed portion.
- Break costs — If you pay out, refinance, or switch your fixed rate loan before the fixed period ends, you may face significant break costs.
- Rate at expiry — When the fixed period ends, your loan will typically revert to the lender's standard variable rate, which could be higher than your current rate.
Risks of fixing your rate
- Rates may fall — If variable rates decrease during your fixed term, you'll be locked into the higher fixed rate and unable to take advantage of the drop.
- Property sale complications — If you sell your property during the fixed term, break costs will apply and could be significant.
- Changing circumstances — Fixed loans are less adaptable if your financial situation changes (e.g., receiving an inheritance, changing jobs, or wanting to renovate).
General disclaimer: This calculator provides estimates only and does not constitute financial advice. Results are based on the information you provide and standard principal and interest repayment calculations. Actual repayments may vary depending on your lender's specific terms, fees, and policies.
This tool does not take into account your personal financial situation, objectives, or needs. Before making any decisions about fixing your interest rate, we strongly recommend speaking with your Alcove lending adviser to discuss what's right for your circumstances.
Alcove Capital Partners — Authorised Credit Representative (ASIC No. 545264). Credit advice by Canopy Private Pty Ltd, Australian Credit Licence 558709.