It is Tuesday, the 31st of March, 2026, and if you have been keeping even a casual eye on the news lately, you’ll know that the financial weather has been a little… unpredictable. We’ve already seen two interest rate hikes since the calendar flipped over to January, and the whispers coming out of the economic circles suggest we could be staring down at least another two before the year is out.
For many high-income professionals and business owners, this creates a bit of a “dinner party dilemma.” Do you stick with the variable rate and hope the tide turns? Or do you lock things in and potentially miss out if rates drop in 2027?
At Stellar Finance Group, we’re all about making the complex simple. Whether you are managing a growing business or balancing a high-pressure corporate career, your mortgage shouldn’t be another source of stress. Today, we’re diving into why fixing your rate: or at least a portion of it: might be the smartest strategic move you make this year.
The 2026 Rate Reality: Where are we now?
Let’s be real – it’s proving to be a challenging time for us all. After a period of relative stability, the early 2026 hikes caught many by surprise. According to recent commentary, the RBA is grappling with persistent inflation, and while we all wish for a reprieve, the immediate forecast looks a bit “upwardly mobile.”
When rates move this quickly, the “loyalty tax” starts to bite hard. This is the extra interest you pay simply because you’ve stayed with the same big bank for years without questioning your deal. If you’re still sitting on a variable rate that has climbed twice in three months, you might be paying significantly more than a new customer would.
If you want to see how the most recent moves have impacted the numbers, check out our breakdown of the RBA March hike and how it affects your monthly mortgage.
Why fixing your rate provides more than just a number
For our clients: many of whom are medical professionals, legal experts, and entrepreneurs: the biggest asset isn’t just money; it’s time and mental bandwidth.
Fixing your mortgage rate is essentially buying “peace of mind.” It’s the financial equivalent of knowing exactly how much your grocery bill will be for the next three years, regardless of what happens to the price of avocados.
When you fix your rate, you get:
- Certainty: You know exactly what your repayments are to the cent.
- Budgeting Power: For business owners, this is a game-changer for cash flow management.
- Protection: If those rumoured third and fourth hikes do come to fruition, you’re shielded.
The “Split Loan” Strategy: The Best of Both Worlds
One of the most common misconceptions we hear is that you have to be 100% fixed or 100% variable. In reality, for most high-income earners with complex structures, a “split loan” is often the most sophisticated path forward.
Imagine splitting your $1.5M loan into two parts. You might fix $1M to protect yourself against those looming 2026 hikes, ensuring your core lifestyle is protected. The remaining $500k stays variable, allowing you to utilise an offset account.
At Stellar Finance Group, we’re experts in these complex structures. We know that as a professional, you might receive significant bonuses or have business distributions that you want to park in an offset to reduce interest. By splitting the loan, you get the “sleep at night” factor of a fixed rate, combined with the flexibility of a variable one.
Is it too late to fix?
This is the question I get asked almost every day. “Lisa, have I missed the boat?”
The truth is, nobody has a crystal ball. However, we do know that global tensions and local economic shifts are continuing to put pressure on the market. We recently discussed how global tensions are impacting local rates, and those external factors don’t look like they are settling down anytime soon.
Locking in a rate now isn’t about “beating the bank” – it’s about managing risk. If you can secure a rate that fits comfortably within your professional income and allows you to keep building your wealth, then it’s a win. Waiting for the “perfect” bottom can often result in missing the opportunity altogether while rates continue to climb.
Why professionals and business owners need a strategic review
If your finances involve company titles, trust structures, or multiple investment properties, a simple “online calculator” fix isn’t going to cut it. High-income professionals often have specific tax requirements that need to be considered before making a big change to their lending.
A strategic review with us isn’t just about finding the lowest rate on a spreadsheet. We look at the “why” behind your debt.
- Are you planning to renovate?
- Are you looking to expand your business?
- Do you need to release equity for your next investment?
We take a PhD-level approach to your finance structure. We’ve helped clients like Wayne Jones and Chad Hurst navigate these exact waters, ensuring their loans work for them, not the other way around.
The “Big Bank” trap vs. the Broker advantage
It’s easy to just jump onto your banking app and click “fix my rate.” But here is the secret: the rates offered to existing customers in an app are rarely the best rates available in the market.
As brokers, we have access to a vast panel of lenders, including those who specialise in professional packages for doctors, lawyers, and accountants. These packages often include waived LMI (Lenders Mortgage Insurance) or significantly discounted rates that you won’t find on a public website.
By conducting a review now: before those next two predicted hikes hit: we can shop around to see if your current lender is actually being competitive, or if it’s time to move your business elsewhere. You can learn more about why mortgage brokers matter and how we advocate for you, not the banks.
Common mistakes to avoid when fixing
- Ignoring the Break Costs: If you decide to sell or refinance before the fixed term is up, banks can charge “break costs.” These can be hefty, so we always ensure your 2-5 year plan aligns with your fixed term.
- Forgetting the Offset: As mentioned, most fixed loans don’t allow for a full offset account. This is why the split loan is so vital for high-earners who want to keep their cash working for them.
- Not Acting Fast Enough: In a rising rate environment, “fixed” quotes can change daily. If you find a rate that works for your strategy, moving quickly is key.
Making the Move: Your Next Steps
The first quarter of 2026 has been a wake-up call for many mortgage holders. If the thought of another two interest rate hikes makes you reach for the wine or a block of cheese (which, let’s be honest, would disappear faster than a low-interest rate anyway), then it’s time for a conversation.
We’re all about making the complex simple. You don’t need to spend your weekends reading RBA transcripts: that’s our job.
Whether you’re looking to fix your home loan, or you’re curious about commercial lending mistakes to avoid in your business, we’re here to help.
Let’s chat
At Stellar Finance Group, we’re dedicated to serving high-income professionals with custom finance solutions that actually make sense for your lifestyle.
If you want to see who you’ll be working with, meet Lisa Bridgett and the rest of the team. We pride ourselves on being approachable, knowledgeable, and: most importantly: on your side.
Don’t let the 2026 rate hikes dictate your financial future. Let’s get a strategy in place that gives you the stability you deserve. Check out our testimonials to see how we’ve helped others in your position, and when you’re ready, let’s talk.
The market might be moving, but with the right strategy, you can stay exactly where you want to be: in control.
Ready to lock in your strategy?
If you’d like a personalised review of your current mortgage and whether fixing, splitting, or refinancing makes sense for you, we’d love to help. Let’s talk.
