Choosing between a fixed and variable interest rate is one of the most important decisions when applying for a home loan. A fixed rate offers stability—your repayments stay the same for a set period, protecting you from unexpected rate increases. This option is popular with families on a strict budget or anyone wanting certainty.
On the other hand, a variable rate gives you flexibility. When rates drop, your repayments reduce, and many variable loans come with useful features like offset accounts, extra repayments, and redraw facilities. These tools help you pay off your loan faster and save interest over time.
The best choice depends on your financial goals, risk comfort, and future plans. Some borrowers choose a split loan—locking part of the loan at a fixed rate while keeping the rest variable. This provides a balance of certainty and flexibility.
A mortgage broker can analyse your situation, model repayment scenarios, and guide you toward the structure that works best for your lifestyle and long-term goals.
