Splitting or fixing your variable home loan
Lock in some certainty
Budget better, knowing your min monthly repayments.
Protect against rate rises
If interest rates rise your repayments will stay the same.
Make and redraw2 up to $30k in extra repayments1.
Make a calculated choice
Split flexibility and security
Get the best of both worlds and split your loan.
Weigh up all your options
Find a home loan that meets your current needs.
Calculate then commit
Make sure the numbers stack up in your favour.
Fix in 3 steps
App: Select your home loan, scroll down to Home loan settings and select Switch to fixed rate.
Desktop: on your dashboard, open your loan’s drop-down menu.
Frequently asked questions
When you fix your entire variable home loan:
- you'll no longer able to link a 100% 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 prepay more than $30k
- during your new fixed rate term, you’ll be able to make extra repayments up to $30k without a break cost1, (though you’ll be able to redraw all of these funds anytime, with no redraw fee2).
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 offset funds
Do you have a St.George Complete Freedom offset account linked to your variable home loan? Before fixing, you’ll need to decide what you’d like to do.
Transfer into variable loan
- You can transfer an unlimited amount into your variable home loan as an extra repayment.
- When you fix, this extra repayment will be ‘temporarily absorbed’ into your fixed rate loan, and can only be accessed at the end of the fixed rate term.
- The amount you owe will reduce (lower fixed loan balance).
Leave in my Complete Freedom account
- The amount you owe won’t change (same loan balance).
- Complete Freedom accounts don't earn interest and can’t be linked to a fixed loan.
Once you’ve fixed your loan, you can only transfer up to $30k in extra repayments without a break cost.
Let’s say Ian has a variable loan, his balance is -$600k (as he has no funds available to redraw), and $100k in his linked Complete Freedom offset account.
- Ian transfers offset funds into variable loan. This reduces the amount Ian will owe on his fixed rate loan to -$500k. His recent extra repayment of $100k can only be accessed at the end of the fixed rate term.
- Ian leaves funds in Complete Freedom account. The amount Ian owes on his fixed rate loan remains -$600k. He’ll have access to the $100k in his Complete Freedom account – but it won’t 100% offset his fixed loan or earn any interest.
During Ian'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.
If you have redraw funds
When fixing your loan in Internet Banking, you’ll be asked what you’d like to do with your available balance (if your redraw isn’t activated, we may ask you to call us instead):
- Transfer your ‘available’ redraw balance to another St.George account before fixing your loan (there's no redraw fee).
- Your fixed loan balance will increase.
‘Keep funds in loan account’
Your extra repayments will be ‘temporarily absorbed’ into your loan, and can only be accessed at the end of the fixed rate term.
Let’s say Sam has a -$550k variable home loan balance (as she has a $50k redraw ‘available’ balance).
- Sam redraws funds. This will increase the amount Sam owes on her fixed rate loan to -$600k. She’ll have access to the redrawn $50k in another account.
- Sam keeps funds in loan account. The amount Sam owes on her new fixed rate loan remains -$550k. She can only access the $50k at the end of her fixed term.
During Sam'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.
Conditions, credit criteria, fees and charges apply. Based on St.George’s credit criteria, residential lending is not available for Non-Australian resident borrowers. Interest rates subject to change. Before making a decision, it’s best to read the terms and conditions.
Fixed rate home loan: The Bank will apply the fixed rate that is available at the loan settlement date or the date the fixed rate period commences. At the end of the fixed rate period the interest rate will convert to the applicable variable home loan interest rate.
1Break costs: $30,000 prepayment threshold for the entire fixed period without break costs or fees applying. For fixed rate loans taken up prior to 18 August 2019, customers can make prepayments of up to the $10,000 prepayment threshold in each 12 month period without break cost or fees applying. Prepayment break costs are explained in the .
Redraw facility: if you have 'available funds' (you’re ahead on your 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 (in-branch it’s $30k). For fixed loans you can redraw up to your prepayment threshold during your fixed term. Read our for full details.