Fixed vs Variable › Can I make extra repayments on a fixed loan?

Can I make extra repayments on a fixed loan?

Usually only up to a capped amount each year, if at all. Fixed loans typically limit extra repayments, and going over the cap can trigger fees. Variable loans generally allow unlimited extra repayments.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

This is a key limitation of fixing. If you expect to pay down your loan quickly, perhaps from bonuses or a windfall, a fixed rate can get in the way and even cost you in fees. Variable suits aggressive repayment. If you want both certainty and the ability to overpay, splitting the loan is the common solution.

The key points

Fixed loans usually cap extra repayments.
Exceeding the cap can trigger fees.
Variable allows unlimited extra repayments.
Split the loan if you want both.

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More fixed vs variable questions

Back to the full Fixed vs Variable guide

Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.