Fixed vs Variable: Choosing the Right Home Loan

One of the first decisions you will make is whether to fix your interest rate, keep it variable, or split the difference.

Fixed rate

A fixed rate locks your repayments for a set period (often 1–5 years), giving you certainty and protection if rates rise. The trade-off: less flexibility and possible break costs if you exit early.

Variable rate

A variable rate moves with the market. You benefit if rates fall and usually get features like offset accounts and extra repayments — but your repayments can also increase.

Split loans

Many buyers split their loan — part fixed, part variable — to balance certainty and flexibility.

General information only, not financial advice.