Split or fix my variable home loan
Whether you've always had a variable rate home loan, or your fixed interest rate term has ended, fixing could give you up to five years of certainty.
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Why fix?
Why fix?
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Certainty
Budgeting’s easier, as you’ll know what your repayments will be each month.
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Protect against rate rises
Lock in the same interest rate for up to 5 years.
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Fix any portion
You can choose to fix some (split) or fix your entire variable rate balance anytime, in three easy steps.
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Is fixed the right choice for you?
First, check if a fixed rate term matches your current financial situation and homeowning goals.
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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.
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Compare fixed with variable
Weigh up the certainty of fixed with the freedom of variable, along with interest rates and home loan features.
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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 $30k[#]during the fixed term.
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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.
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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.
Step 1 Sign in and select your home loan.
Step 2 App: scroll down to Home loan settings and select Switch to fixed rate.
Desktop: on your dashboard, open your loan’s drop-down menu.
Step 3 Choose to fix a portion (split) or the entire loan, and select the number of years. Follow the prompts and submit.
Is your fixed rate ending soon? You could re-fix.
Lock in your new fixed interest rate by calling us on 132 558, or find out more about what you should do when your fixed rate term ends.
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Plan ahead
Staying put
I’ve no plans to move. I want to understand my options.
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Renovating or extending
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Moving on
I'm selling my home in the next year and want to buy a new home.
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Frequently asked questions
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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 cost[#] 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.
I have offset funds
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 fee[#].
I have redraw funds
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 fee[#].
How to redraw
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 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
We'll send you a letter 6-8 weeks before expiry detailing your new repayments and options. You may be able to re-fix, automatically roll onto a variable rate (with optional offset) or split your home loan.
Of course, you can fix a portion (split) or all of your variable interest rate any time.
Review your fixed expiry options
For help to re-fix: Call 132 558, 8am-8pm Mon-Fri and 9am-6pm, Sat-Sun (Sydney time) or request a callback.
Suppose you have a year or so left on your fixed rate period. You decide to break your fixed term, either because you want to close out or make changes to your loan, move to a variable rate or lock in another fixed rate term now to shield yourself from possible rate rises.
In each scenario, you may need to pay break costs as you're breaking your fixed rate term early. Break costs can be expensive, so you should request a break cost calculation before deciding. Once you know your break costs, you can determine if it's worth paying break fees.
To ask for a break cost quote: Call 132 558, 8am-8pm Mon-Fri and 9am-6pm, Sat-Sun (Sydney time) or request a callback.
Life’s unpredictable. If you’re feeling the pinch and unable to meet your financial commitments, the sooner you tell us, the sooner we can help.
Eligibility criteria apply.
The Westpac Assist team are here to help:
- Explore your options
- Apply online for financial hardship, or call the Westpac Assist team on 1800 067 497.
A financial hardship arrangement will appear on your credit report, but it should not impact your credit score - as long as you meet your revised repayments under the arrangement.
The reasons for your financial hardship arrangement will not be included in the credit report. And financial hardship information only stays on a credit report for 12 months: after 12 months the fact that you entered into a hardship arrangement will no longer be visible on your credit report.
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I’m ready to lock it in
Choose your new fixed rate now online
in three easy steps.
in three easy steps.
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