How to Lock in a Fixed Rate Before Rates Rise: The Broker's Advantage

Published: January 27, 2026
Reading Time: 7 minutes
Location Focus: Perth, WA

The Window Is Closing

With the RBA expected to raise interest rates in February 2026, Perth borrowers considering fixed rates have a narrow window to act. Once rates rise, fixed rates will likely increase as well, making current rates more attractive than future rates.

This guide will walk you through the process of locking in a fixed rate and explain how working with a mortgage broker makes the process faster and more efficient.

Step 1: Assess Your Situation

Before locking in a fixed rate, assess your current situation. Are you on a variable rate that you're concerned about? Are you refinancing and considering fixed rates? Are you a new borrower deciding between fixed and variable?

Your situation affects your fixed rate decision. If you're on a variable rate and concerned about rate rises, fixing your rate provides certainty. If you're refinancing, you have the opportunity to reassess your rate structure. If you're a new borrower, you're deciding between fixed and variable for the first time.

Step 2: Understand Fixed Rate Options

Fixed rates come in different terms, typically 1, 2, 3, 4, or 5 years. Shorter fixed terms (1-2 years) typically have lower rates than longer terms (4-5 years). This is because longer fixed terms lock in rates for longer, exposing lenders to more interest rate risk.

When considering fixed rate terms, think about your situation. If you plan to refinance or sell within 2 years, a 2-year fixed rate might be appropriate. If you plan to stay in your home longer, a longer fixed term provides more certainty.

Step 3: Compare Fixed Rates Across Lenders

This is where a mortgage broker's value becomes apparent. Different lenders offer different fixed rates. Shopping around is essential to ensure you get the best available rate.

If you apply directly to a bank, you'll get that bank's fixed rate. If that bank isn't competitive, you've wasted time and had a credit inquiry on your record. If you want to compare other banks' rates, you'll need to apply to each one individually, generating multiple credit inquiries.

A mortgage broker can compare fixed rates across multiple lenders simultaneously. A broker can identify which lenders are most competitive for your situation and recommend the best option.

Step 4: Calculate Your Break-Even Point

If you're currently on a variable rate and considering switching to fixed, calculate your break-even point. This is the point at which the savings from fixing your rate exceed any switching costs.

For example, if your current variable rate is 3.60% and a fixed rate is 3.85%, the fixed rate is 0.25% higher. If you have a $400,000 mortgage, this means your repayments would increase by approximately $100 per month.

However, if rates rise to 4.35% or higher, your variable rate would increase to match, and your repayments would increase even more. The fixed rate would save you money compared to the higher variable rate.

A mortgage broker can calculate your break-even point and show you exactly how much rates would need to rise for fixing your rate to make financial sense.

Step 5: Decide on Fixed Rate Term

Once you've decided to fix your rate, decide on the fixed term. Shorter terms have lower rates but provide less certainty. Longer terms have higher rates but provide more certainty.

Consider your situation. If you're concerned about rate rises in the near term but expect rates to fall later, a shorter fixed term might be appropriate. If you want certainty for an extended period, a longer term might be better.

A mortgage broker can help you think through this decision and recommend a term that matches your situation.

Step 6: Submit Your Application

If you're working with a broker, the process is straightforward. You'll discuss your situation with the broker, confirm that you want to fix your rate, and authorize the broker to submit your application.

The broker will submit your application to the lender offering the best fixed rate for your situation. The lender will assess your application and confirm your fixed rate offer.

If you're applying directly to a bank, you'll contact the bank, discuss your situation, and submit your application directly.

Step 7: Complete Your Refinancing

If you're switching from a variable rate to fixed, your refinancing will involve a few additional steps. The lender will order a valuation to ensure the property value supports the loan amount. They'll conduct a final review of your financial situation.

Once these steps are complete, your fixed rate will be activated. Your new repayment will be calculated based on your fixed rate, and your first repayment will be due on the agreed date.

Step 8: Understand Your Fixed Rate Features

Once you've locked in a fixed rate, understand your loan features. Can you make extra repayments? Can you access a redraw facility? What happens when your fixed rate ends?

These features vary by lender and loan product. A mortgage broker can explain your specific loan features and help you understand how to use them effectively.

Special Considerations for Perth Borrowers

Perth borrowers should be aware that Perth's property market is emerging as an investment opportunity. If you're an investor considering a fixed rate on an investment property, understand that investment property loans sometimes have different features than owner-occupier loans.

A mortgage broker can help you structure an investment property loan with fixed rates that optimize your investment returns while providing certainty about your repayments.

Common Fixed Rate Questions

What happens when my fixed rate ends? When your fixed rate ends, your loan will revert to a variable rate (unless you fix again). Your repayment will change to reflect the variable rate at that time.

Can I break my fixed rate early? Yes, but breaking a fixed rate typically involves paying break costs. These costs can be substantial, so breaking your fixed rate should be a last resort.

Can I refinance during my fixed rate? You can refinance, but you'll need to pay break costs to exit your current fixed rate. A mortgage broker can help you determine whether refinancing makes financial sense after accounting for break costs.

What if rates fall during my fixed period? If rates fall significantly during your fixed period, you'll be locked into a higher rate. This is the trade-off for having certainty about your repayments. However, you can refinance if you're willing to pay break costs.

Taking Action

If you're considering locking in a fixed rate before rates rise, now is the time to act. The window before February's expected rate increase is narrow, and fixed rates will likely increase once the RBA raises rates.

Contact a mortgage broker today to discuss your fixed rate options. A broker can compare rates across multiple lenders, calculate your break-even point, and help you lock in the best available fixed rate.

The Bottom Line

Locking in a fixed rate before rates rise provides certainty about your repayments and protects you against further rate increases. By working with a mortgage broker, you can access multiple lenders' fixed rates, ensure you get the best available rate, and complete your fixed rate application efficiently.

Ready to lock in a fixed rate? Call Frontier Finance at 0413 798 731. Our brokers will compare fixed rates across multiple lenders and help you lock in the best available rate before rates rise.

Disclaimer: This article provides general information about locking in fixed rates. Specific fixed rates, terms, and features vary by lender. Please consult with a qualified mortgage broker to discuss which fixed rate options are available for your specific circumstances.