Should You Fix Your Home Loan Rate in 2026?

Insights from Collins Hume strategic partner, Borro Mortgage Brokers

With interest rates continuing to shift in 2026, many clients are asking whether now is the right time to fix their home loan rate. It’s a fair question, particularly with ongoing uncertainty around where rates may move next.

The reality is there is no one-size-fits-all answer. Fixing your rate isn’t about trying to pick the market perfectly. It’s about structuring your home loan in a way that aligns with your financial position, cash flow and future plans.

What fixing your rate can offer

Fixing part or all of your home loan can provide certainty around repayments, which can be valuable for anyone wanting stability in their budgeting. For some, this removes the stress of potential rate increases and allows for more confident financial planning.

What to be aware of

Fixed rates do come with trade-offs. They can limit flexibility, including restrictions on extra repayments, refinancing or accessing features such as offset accounts. There may also be break costs if circumstances change. Importantly, if interest rates decrease, you remain locked into a fixed rate for the agreed term.

Why many are choosing a split strategy

Rather than fixing 100% of their loan, many borrowers are now choosing to split their home loan. This approach allows you to fix a portion for certainty, while keeping the remainder variable to maintain flexibility and benefit from any potential rate reductions.

The key takeaway?

Fixing your home loan rate in 2026 isn’t about predicting where rates will go. It’s about managing risk and ensuring the loan structure supports your broader financial strategy. Regular reviews are key, particularly in a changing rate environment.

Strategic partnerships that support Collins Hume clients

Collins Hume is proud to partner with Borro to assist clients with their lending needs—providing access to tailored finance solutions across home, business and investment lending.

If you’d like to sense-check a scenario, feel free to reach out to the team at Borro via our website https://www.collinshume.com/client-hub.