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Make the most of both worlds

Westpac can offer you home loans which give you the option of combining a fixed rate home loan with a variable rate home loan. By choosing to combine fixed and variable loans you can take advantage of the flexibility offered by a variable rate loan and the certainty of repayments offered by a fixed rate loan.


What’s the difference between fixed and variable?

Westpac variable rate home loans 

With a variable rate home loan the interest rate can fluctuate; it can go both up and down and this can affect your repayments.

Variable rate home loans also tend to offer more flexibility, such as the ability to make unlimited extra repayments (so you’ll be able to pay your loan off quicker). They also often offer features such as an offset facility (a linked Westpac Choice transaction account where every dollar you have in that account ‘offsets’ against your loan balance, reducing the interest you pay on your home loan by an equal amount).

Westpac fixed rate home loans

With a fixed rate home loan, you get the certainty of knowing what your repayments will be for a set period of time. With a Westpac Fixed Options Home Loan, for example, you can fix your interest rate for a term of 1 to 5 years.  Fixing your interest rate means if interest rates go up, your repayments and interest charge will still stay the same. However if interest rates fall, you won’t get the benefit of your repayments going down.

Fixed rate home loans offer repayment certainty but tend to be more restrictive. You can only make limited extra repayments and should you want to pay off the loan during the fixed period there could be break fees to pay.

Westpac combination home loans 

By combining a fixed and a variable loan, you’re combining both flexibility and certainty. Here’s how it works:

  • You choose how much of the combination loan you want to split between fixed and variable
  • The fixed rate portion gives you certainty over your repayments – protecting you from interest rate fluctuations
  • The variable rate portion gives you access to a range of flexible features such as the ability to make extra repayments so you can pay off your home loan sooner.