Fixing your home loan rate involves locking in an interest rate for a specific period, typically 1-5 years, providing certainty over your repayments. As of December 2025, this is a common consideration for Victorian homeowners contemplating a property sale.
Currently in Melbourne, particularly within the Eastern Suburbs where Fletchers operates, the decision to fix isn’t directly tied to the selling process, but it impacts your financial position. A fixed rate offers predictability, which can be useful when budgeting for pre-sale preparation costs – typically $2,000-$8,000 for styling and $500-$1,500 for professional photography. However, if interest rates fall in 2026, you may miss out on potential savings. Melbourne’s property campaigns generally run for 4-6 weeks, and settlement takes 30-60 days. During this period, your loan repayments remain constant with a fixed rate. We observe that sellers often review their financial situation, including loan rates, during the initial appraisal phase with an agent. The strength of demand in areas like Balwyn and Doncaster means properties are generally selling within a reasonable timeframe, but financial preparedness is key. It’s important to note that breaking a fixed-rate loan can incur significant penalties, so consider your potential selling timeline carefully.
Ultimately, fixing your rate is a personal financial decision, but understanding its implications within the context of a potential property sale in the current Melbourne market is crucial.