Choosing between fixed and variable interest rates is one of the most common decisions Australian mortgage holders face.
Variable rate loans
- Rate moves with market and lender pricing
- Often more flexible extra repayments and features
- Repayments can rise or fall over time
Fixed rate loans
- Rate locked for a set period (typically 1–5 years)
- Repayment certainty during the fixed term
- Break costs may apply if you exit early
Split loans
Many borrowers split their loan — part fixed, part variable — to balance certainty with flexibility.
Which suits you?
Consider your budget buffer, how long you plan to keep the loan, and whether you need features like offset. A broker can model scenarios based on current lender offers.
