Understanding Fixed vs. Variable Rates

When a fixed rate helps

Fixed rates offer repayment certainty, which can be helpful for budgeting and first-year cash flow planning.

• Useful during renovation periods when costs are higher.
• Provides stability if you expect rates to rise.
• Check break fees before locking in.

Where variable shines

Variable loans typically include offset accounts and redraw, giving you flexibility to reduce interest with surplus cash.

• Benefit if rates fall while you hold the loan.
• Often easier to make extra repayments without penalties.

Consider a split strategy

Splitting part fixed and part variable can balance certainty with flexibility. A broker can model scenarios based on your goals.