Should I be choosing a fixed or variable rate for my home loan? The truth is, no type is better than the other. The choice depends on your unique lending needs.


Fixed-rate Pros: you’ll follow a fixed interest rate for up to five years so you’re protected during cash rate hikes. This means you can budget your money properly because repayments will be the same.


Fixed-rate Cons: if in the case the cash rate drops, you’ll still be paying the same interest rate, which means you’re paying above market rate. You cannot make extra repayments nor refinance


Variable rate Pros: your interest rate follows the up and down movements of the cash rate. Should the cash rate drops, you pay less.


Variable rate Cons: if the rate goes up even if it happens several times within a year, you pay more, but you can refinance and there are no break or exit fees.


Still torn between these two types of loans? Speak with a mortgage broker and receive guidance on finding the home loan that best suits you.

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