Split or fix my variable home loan
Why fix?
Certainty
Budgeting’s easier, as you’ll know what your repayments will be each month.
Protect against rate rises
Lock in the same interest rate for up to 5 years.
Get ahead on repayments
You can make and redraw up to $30k in extra repayments, with no break costs1 or redraw fee2.
Fix any portion
You can choose to fix some (split) or fix your entire variable rate balance anytime, in three easy steps.
Is fixed the right choice for you?
First, check if a fixed rate term matches your current financial situation and homeowning goals.
Calculate your repayments
Compare your current repayments and what they could be if you’re looking to fix all or part of your variable rate home loan.
Compare fixed with variable
Weigh up the certainty of fixed with the freedom of variable, along with interest rates and home loan features.
Features not on fixed loans
You can’t link an offset account or make unlimited cost-free extra payments – there may be a break cost if you prepay more than $30k1 during the fixed term.
Split to hedge your bets
A split loan could mean getting the best of both worlds, combining the benefits of a variable rate with the certainty of a fixed loan.
Split loan tip #1
Unlike most other lenders, with Westpac you can redraw your fixed loan extra repayments. So you've got the freedom to shift your ‘available’ funds into whichever fixed or variable account has the higher interest rate at the time... to pay less interest! No redraw fee2, no min redraw on available funds, and if you stay under your $30k fixed loan prepayment threshold, you avoid the break cost1.
Split or fix in three easy steps
Because you already have a variable home loan with us, it’s simple to fix all or a portion of your loan in the Westpac App or Online Banking. Before fixing your entire loan, you’ll need to consider what you want to do with any offset or any funds ‘available’ for redraw – see FAQ.
Is your fixed rate ending soon? You can re-fix.
If you’ve been sent a re-fix offer as your current fixed rate term’s due to end, you can accept that offer now on Online Banking. Lock in your new fixed interest rate online now, or find out more about what you should do when your fixed rate term ends.
Plan ahead
What are your plans for your home in a year, 2 years or even 5 years? Planning ahead can ensure you get the best outcome for your future and the home loan that best fits your needs.
Staying put
I’ve no plans to move. I want to understand my options.
Our top picks:
Renovating or extending
I’m looking to make some improvements over the next few years.
Our top picks:
Moving on
I'm selling my home in the next year and want to buy a new home.
Our top picks:
Frequently asked questions
When you fix your entire variable home loan:
- you'll no longer able to link an offset account to your home loan
- you'll no longer be able to make unlimited fee-free extra repayments, as there’s a fixed term break cost1 if you exceed your prepayment threshold of $30k
- you can redraw all of the fixed loan prepayments that you made during your fixed term anytime.
So beforehand, it's important to consider what you’d like do with any funds in a linked offset account, and any redraw funds available in your home loan account.
If you have a Westpac Choice offset account linked to a Rocket variable home loan, you’ll need to decide what you’d like to do before fixing.
Transfer into variable loan
- You can transfer an unlimited amount into your variable home loan as an extra repayment.
- This variable loan extra repayment will then be ‘absorbed’ into your fixed rate loan – so you won’t be able to redraw once fixed (even if your loan rolls onto variable at expiry).
- The amount you owe will reduce (lower fixed loan balance and limit).
Leave in your Choice transaction account
- The amount you owe won’t change (same loan balance and limit).
- Choice accounts can’t be linked to a fixed loan, and don't earn interest.
Example
Let’s say Ari has a $600k variable home loan limit, her balance is -$600k (as she has no funds available to redraw), and $100k in her linked Choice offset account.
- Ari transfers offset funds into variable loan. This reduces the amount Ari owes on her fixed rate loan to $500k (new limit). Her recent extra repayment of $100k will no longer be available to redraw.
- Ari leaves funds in Choice account. The amount Ari owes on her fixed rate loan remains -$600k. She’ll have access to the $100k in her Choice account – but it won’t offset her fixed loan or earn any interest.
During Ari's new fixed rate term, she'll be able to make extra repayments up to $30k without a break cost, and redraw all of these funds anytime, with no redraw fee2.
When fixing your loan in Online Banking, you’ll be asked what you’d like to do with these available funds (if your redraw isn’t activated, we’ll ask you to call us instead):
‘Redraw funds’
- There's no redraw fee.
- Your fixed loan balance will increase and be the same as your fixed loan limit.
‘Clear access to funds’
- Your extra repayments will be ‘absorbed’ into your loan, so you won’t be able to redraw them (even if your fixed loan rolls onto variable later).
- Your fixed loan limit will reduce and be the same as your loan’s balance.
- Compared to the ‘Redraw funds’ option, your monthly repayments will be lower, as you’ll be paying off a smaller loan.
Example
Let’s say Dom has a $600k variable home loan limit, his balance is -$550k (as he has $50k available to redraw).
- Dom redraws funds. This will increase the amount Dom owes on his fixed rate loan to -$600k. He’ll have access to the redrawn $50k in another account.
- Dom clears access to funds. The amount Dom owes on his new fixed rate loan remains -$550k (new limit). His $50k will no longer be available to redraw.
During Dom's new fixed rate term, he'll be able to make extra repayments up to $30k without a break cost, and redraw all of these funds anytime, with no redraw fee2.
Westpac App – select your home loan account, then select Transfer to move funds to a Westpac account, or select Pay to transfer to another bank account.
Haven’t set up your redraw? Simply sign into Online Banking to submit your request or print, sign and email a scanned copy (or hi-resolution photo) of our Redraw Authority form (PDF 66KB) (PDF 66KB) to loanmaintenance@mortgage.westpac.com.au (no need to include a stamp from the bank). Redraw is subject to approval.
Need more help deciding? Book a callback
Things you should know
Conditions, credit criteria, fees and charges apply. Based on Westpac's credit criteria, residential lending is not available for Non-Australian Resident borrowers.
1Break costs on fixed loan prepayments and switching: customers can make total prepayments of up to $30,000 (cumulative) for fixed loans, without costs or fees applying. You may incur a break cost and administration fee if your prepayments exceed this threshold, or if at any time before the end of a fixed rate period you switch to another product, interest rate (fixed or variable) or repayment type.
2Redraw facility: if you have ‘available funds’ (you’ve made extra home loan repayments) and you’ve activated your redraw facility, you’re free to redraw them with no redraw fee. Up to $100k will be available to redraw from your variable loan online or over the phone each day (unlimited in-branch). For fixed loans you can redraw up to your prepayment threshold during your fixed term. Read our Home Loan Redraw Authority form (PDF 66KB) for full details.