Fixed vs Variable Rate Mortgages: Which Is Right for You?

When applying for a home loan, one of the first decisions you’ll need to make is whether to go for a fixed or variable interest rate. Each option comes with its own set of benefits and drawbacks, and the right choice for you will depend on your financial situation and future plans.

A fixed-rate mortgage offers the security of knowing that your repayments will stay the same over the loan term, regardless of interest rate fluctuations. This can be a great option for those who prefer stability in their monthly payments. However, the downside is that fixed rates tend to be slightly higher, and you may miss out on potential savings if interest rates fall.

In contrast, variable rate mortgages tend to offer lower initial rates but come with the risk that your repayments could increase if rates rise. That said, if the Reserve Bank of Australia (RBA) lowers rates, you could benefit from reduced repayments. It’s important to consider how comfortable you are with fluctuating repayments before making a decision.

Compare rates with us and find the mortgage that’s right for your financial goals.