With a fixed-rate loan, you can fix the interest rate on your loan for a period of three, five or ten years. During this period, the bank cannot change the interest rate on your loan and this gives you very predictable costs. Historically, fixing interest rates does not save you money – but it can be seen as an insurance policy against higher interest rates. You can choose fixed rates on parts of your home mortgage, but you cannot fix the interest rate on more than 75 per cent of the value of the home. Read more about fixed-rate loans