If you're feeling a little nervous about interest rates right now, you're definitely not alone!
Following another interest rate increase by the Reserve Bank of Australia (RBA) this week, there's understandably a lot of uncertainty among Australian homeowners.
And with talk of potentially another three rate increases on the horizon, it's no wonder so many people are asking me the same question:
"Jess, should I be fixing my home loan interest rate?"
It's a great question, and one that's worth exploring.
So, I've spent some time researching where fixed home loan rates are currently sitting in the Australian mortgage market, and I wanted to share what I've found.
Because while we can't control what the RBA does next, we can take steps to understand our options, make informed decisions and feel a little more in control of our home loans.
And that's what I'm here to help you do!
Will Australian Interest Rates Keep Rising in 2027?
Let's address the elephant in the room.
There's plenty of speculation about where Australian interest rates are heading next. Some economists are predicting further increases, while others have different views on what the coming months might bring.
But here's something I always remind my clients:
Nobody knows for certain what interest rates will do next. Not me, not the banks and not even the chief economists making the predictions!
And that's important to remember when you're considering whether to fix your mortgage.
Rather than trying to perfectly time the market, I encourage homeowners to focus on what makes sense for their own financial circumstances, lifestyle and comfort level.
For some people, the certainty of a fixed interest rate can provide valuable peace of mind. For others, keeping the flexibility of a variable home loan might be the better fit.
There's no one-size-fits-all answer.
What Are Fixed Home Loan Interest Rates in Australia Right Now?
To give you a clearer picture of what's happening, I've put together a snapshot of indicative fixed home loan interest rates currently available in the Australian mortgage market.
Current Fixed Mortgage Rates – November 2026
Indicative owner-occupied home loan fixed rates as at 4 November 2026, based on an 80% loan-to-value ratio (LVR).
| Fixed Rate Term | Indicative Interest Rate (p.a.) |
|---|---|
| 1 Year Fixed | 6.54% – 6.69% |
| 2 Year Fixed | 6.59% – 6.74% |
| 3 Year Fixed | 6.54% – 6.84% |
| 5 Year Fixed | 6.54% – 6.94% |
Please note: These figures are indicative only and will vary depending on your lender, loan amount, loan-to-value ratio, individual circumstances and loan features. Rates can change at any time and may no longer be available when you enquire. They are interest rates, not comparison rates, and don't include all potential fees or charges.
What Do These Fixed Interest Rates Tell Us?
There are a couple of interesting things worth pointing out.
1. Fixed rates may increase following the latest RBA announcement.
These rates are a snapshot of the market as at 4 November 2026.
Given this week's announcement and the current market sentiment, I wouldn't be surprised if we start seeing some lenders adjust their fixed rate offerings upwards.
Of course, that's my interpretation of the market, not a prediction or guarantee!
2. Fixed rates are relatively similar across different loan terms.
What's particularly interesting is how closely the rates are sitting across the one, two, three and five-year fixed terms.
This may suggest that lenders are pricing in expectations of interest rates remaining relatively elevated for some time.
However, fixed rates are influenced by several factors, including wholesale funding costs, market expectations and lender competition, so we can't use them to reliably predict what the RBA will do next.
The takeaway?
It's worth understanding your options now, rather than waiting until you're feeling under pressure to make a decision.
Should I Fix My Home Loan Interest Rate or Stay Variable?
This is probably the biggest question on homeowners' minds right now.
And my answer is always the same: it depends on you!
The Benefits of Fixing Your Home Loan
A fixed home loan interest rate can offer some welcome certainty, particularly when rates are moving around.
Potential benefits include:
- Predictable repayments: You'll know what your interest rate will be for the agreed fixed period.
- Protection from further rate increases: If variable rates rise, your fixed rate won't increase during your fixed term.
- Easier budgeting: Having consistent repayments can make household cash flow a little easier to manage.
- Peace of mind: For some homeowners, removing uncertainty is worth a lot.
Things to Consider Before Fixing
There are also some important trade-offs.
- If variable interest rates fall, you generally won't benefit from those reductions while you're fixed.
- Fixed home loans can have restrictions on extra repayments.
- Some fixed rate products don't offer the same offset account or redraw features as variable loans.
- Breaking a fixed rate loan early can result in significant break costs.
- When your fixed term ends, your loan will generally revert to a variable rate unless you arrange another option.
This is why I always recommend looking beyond the headline interest rate.
The cheapest-looking rate isn't necessarily the best home loan for your circumstances.
Can You Fix Just Part of Your Mortgage?
Absolutely! And this is an option that many homeowners don't realise is available.
Depending on your lender and loan product, you may be able to split your home loan between fixed and variable interest rates.
For example, you could fix 50% of your mortgage and leave the remaining 50% variable.
This can give you a balance between repayment certainty and flexibility.
You may benefit from some protection against future rate increases while retaining variable loan features on the other portion, depending on your lender.
Of course, a split loan isn't necessarily the right solution for everyone, but it's certainly worth exploring if you're feeling torn between fixing and staying variable.
Already Have a Home Loan? Here's What I'd Suggest Doing Next
Before you rush into fixing your mortgage, there are a few simple steps worth taking.
Step 1: Ask Your Current Lender for a Fixed Rate Quote
Start by contacting your existing bank or lender and asking what fixed interest rates they can offer you.
You can use the indicative rates I've shared above as a starting point for comparison, keeping in mind that your individual circumstances and loan features will influence what's available.
Step 2: Compare Your Rate With the Wider Mortgage Market
If your lender's fixed rate quote seems high, don't assume it's your only option.
As a mortgage broker, I can help you explore what other lenders are offering and whether there may be a more competitive option available.
In some cases, having a competitor's quote can also help when negotiating with your existing lender.
And if your current lender isn't willing to come to the party? We can look at what else is available!
Just remember that refinancing isn't always the best option once fees, loan features and your individual circumstances are taken into account.
Step 3: Consider Your Bigger Financial Picture
Your home loan is about so much more than the interest rate.
It's worth thinking about:
- How comfortable are you with your current mortgage repayments?
- Could your household budget manage another interest rate increase?
- Do you have savings or an offset account to help reduce interest?
- Are you planning to sell, renovate or make major changes in the next few years?
- Would repayment certainty help you feel more financially comfortable?
These are exactly the kinds of conversations I love having with my clients, because the right home loan strategy should support your life, not just look good on paper.
Not Ready to Fix? There Are Other Ways to Manage Rising Mortgage Repayments
If fixing your home loan doesn't feel right for you, that's completely okay!
There are still strategies worth exploring to help manage the impact of rising interest rates.
These might include reviewing your current variable rate, negotiating with your lender, exploring refinancing options, making better use of an offset account or reviewing your overall loan structure.
Even a simple home loan review can help you understand whether your current mortgage is still competitive and suited to your needs.
And sometimes, knowing you've explored your options can make a big difference to how you feel about the road ahead.
A Little Personal Note From Me...
I also want you to know that I'm right in this with you.
Every time interest rates increase, my own mortgage repayments jump by almost $700 a month. Eek!
So believe me when I say I understand how challenging these increases can feel.
I'm not sitting on the sidelines watching it happen. I'm navigating the same rising costs and mortgage pressures as so many of you.
My personal plan? Keep focusing on supporting my wonderful clients, growing The Loan Home and riding out the storm.
Because while the current interest rate environment might be challenging, I genuinely believe that having the right information, a good strategy and someone in your corner can make the journey a whole lot easier.
And if there's one thing I want you to take away from this blog, it's this:
You don't have to navigate your home loan decisions on your own.
Let's Give Your Home Loan a Health Check!
Whether you're considering fixing your mortgage, wondering if your variable rate is still competitive or simply feeling a little overwhelmed by all the interest rate headlines, I'm here to help.
At The Loan Home, my goal is to make mortgages feel less complicated and help you feel informed and confident about your options.
Let's have a chat, look at where your home loan is sitting and explore what might work best for you.
Book Your Home Loan Health Check With Jess
As always, thank you so much for supporting The Loan Home and trusting me to be part of your home loan journey.
We've got this!
Jess x
