If you work FIFO and you're buying your first home, check how a fixed rate loan treats extra repayments before you sign. Many fixed loans cap how much extra you can pay, and that cap can clash with a big pay packet from a good swing.
This article is for WA FIFO workers weighing up a fixed rate against a variable rate, and wondering how hard they can hit the loan once the roster is paying well.
Can You Make Extra Repayments on a Fixed Rate Home Loan?
Often you can, but only up to a limit. Many lenders cap extra repayments on a fixed rate loan each year, and going over the cap can trigger break costs. The cap differs between lenders, so ask for it in writing before you choose a loan.
That matters for FIFO workers because income can come in lumps. Overtime, bonuses and a long swing can leave you with a spare few thousand dollars in one month and not much the next. A loan that lets you pour money in during good months, then ease off, suits that pattern. A tight cap does not.
A variable rate loan usually gives you more room. Many variable loans allow unlimited extra repayments and come with an offset account or redraw. The trade-off is that your repayments can rise if rates go up, which makes budgeting harder.
Fixed Rate, Variable Rate or a Split: What Suits a FIFO Roster?
A fixed rate gives you repayments that stay the same for the fixed term, while a variable rate can move up or down. A split loan sits in between, with part of the loan fixed and part variable.
Fixed suits you if you want certainty. If you are saving for furniture, a car or time off between jobs, knowing your repayment will not change helps. The cost is less flexibility. You may face the extra repayment cap, and if you want to leave the loan early, break costs can apply.
Variable suits you if you want to pay the loan down fast. The cost is that your repayment can go up when rates rise.
A split lets you fix a portion for stability and keep the rest variable for extra repayments. The downside is that you are managing two loan balances, and the fixed part still carries its own cap.
Our mortgages for FIFO workers page explains how lenders view different roster types and income.
Offset Account or Redraw: Where Should Your Spare Cash Sit?
An offset account is a transaction account linked to your loan, and the balance reduces the interest you are charged. Redraw lets you take back money you have paid ahead on the loan. Both can lower interest while keeping your cash reachable.
The features available depend on the lender and on whether the loan is fixed or variable. Some fixed loans do not offer an offset account at all, so ask before you commit. Offset accounts can also come with a package fee, which is the main cost to weigh up.
Offset can suit a FIFO worker because your pay arrives in big chunks. Leaving it in the offset account between swings can cut interest while you keep access to it for everyday costs.
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Book a chat with a Finance & Mortgage Broker at FIFO Home Loans today.
An Example: Fixed Loan, Lumpy Pay and an Extra Repayment Cap
A FIFO worker who puts lump sums into a capped fixed loan can hit the cap quickly and face break costs on the rest. Consider a buyer on an 8 and 6 roster who borrows $500,000 over 30 years. We'll use an illustrative rate of 6.75% p.a. for this example, which is not a current offer.
At that rate, the minimum repayment is about $3,243 a month. Say this buyer picks a fixed loan that caps extra repayments at $10,000 a year. After a strong run of overtime, they want to put $25,000 in. The cap blocks $15,000 of it, and going over could trigger break costs depending on the lender.
Their broker suggests splitting the loan. They fix $300,000 for certainty and keep $200,000 variable with an offset account. The extra cash goes into the offset, and the fixed portion keeps its repayment steady.
The outcome is a loan that has stable repayments on part of the balance, and room to move on the rest. The trade-off is that the $200,000 variable portion can rise if rates go up. A calculator can show how a lump sum affects your own balance and interest.
What Help Is on Offer for WA First Home Buyers?
WA first home buyers can access a first home owner grant of $10,000 for a new home, and a reduced rate of stamp duty on eligible homes. The WA first home owner rate of duty means no duty on homes up to $600,000 from 7 May 2026, with a concession rate up to $800,000. For vacant land, no duty is payable up to $450,000.
The $10,000 grant is for new homes only, and the buyer must move in within 12 months of completion and live there for at least six continuous months. Check the current rules and your own eligibility before you sign a contract.
If your deposit is small, the federal 5% Deposit Scheme lets eligible first home buyers buy with 5% down and avoid lenders mortgage insurance. In WA, the price cap is $850,000 for the capital city and regional centres category and $600,000 for other areas. Which cap applies to a property depends on its suburb and postcode in Housing Australia's postcode search tool. The home loan is provided by the participating lender, so ask the lender whether you can fix part of the loan or have an offset account.
The low deposit loans page covers other ways in. Apply through a participating lender, as you can't apply to Housing Australia directly.
Why Pre-Approval Should Come Before You Pick a Rate
Pre-approval tells you how much a lender may let you borrow before you start making offers. It also gives you time to compare loan features, such as the extra repayment cap, side by side. Our getting loan pre-approval page walks through the process.
FIFO income can be assessed differently by different lenders, particularly overtime and allowances. Our borrowing capacity page explains why the same pay can produce different results. Pre-approval is not a final offer, and it can lapse or change if your situation does.
Talk to a broker who knows rosters first. For more on how we help first home buyers, see our FIFO first home buyers page.
Call one of our team or book an appointment at a time that works for you. We'll look at your roster, your deposit and how much extra you plan to pay, then match you to a loan that fits.
Frequently Asked Questions
Can I make extra repayments on a fixed rate home loan?
Often yes, but many lenders cap the amount each year. Going over the cap can trigger break costs, so check the limit before you choose a loan.
Is a split loan a good option for FIFO workers?
It can be, because you fix part of the loan for steady repayments and keep the rest variable for extra repayments. The trade-off is that the variable part can rise if rates go up.
Do fixed rate loans come with an offset account?
Some do not, and the features depend on the lender. Ask before you commit, and check for any package fee.
What is the first home owner grant in WA?
It is $10,000 for eligible buyers purchasing or building a new home, and it is not available for established homes. Check the current rules and your eligibility before signing a contract.
