🔒 Fixed Rate
You lock in your interest rate for a set period (usually 1–5 years), and your repayments stay the same.
✅ Pros:
- Repayment certainty, making it easier to budget
- Protection against rising rates
- Great if you value stability or have tight cash flow
❌ Cons:
- Limited flexibility, often no extra repayments allowed
- Break fees can apply if you refinance or sell early
- You may miss out if rates drop during the fixed term
🔄 Variable Rate
Your rate can move up or down depending on the RBA and your lender’s decisions.
✅ Pros:
- Usually more flexible with options to make extra repayments, redraw, or use an offset account
- No break fees, making it easier to refinance or switch loans
- If rates fall, your repayments can too
❌ Cons:
- Rates (and repayments) can increase
- Less certainty for budgeting
- Subject to market fluctuations
🤝 What About a Split Loan?
Can’t decide? You don’t have to choose just one.
Split loans let you divide your loan into fixed and variable portions. You get some rate certainty along with some flexibility.
This can be a smart option in uncertain economic conditions like we’re seeing now.
🔍 So… What Should You Do?
This is where so many people go wrong.
They hear someone say:
“I’m fixing my rate for 2 years. You should too!”
or
“Don’t fix. Rates are dropping!”
And they follow that advice without considering their own situation.
But your financial goals, income, risk comfort, and loan structure matter far more than someone else’s opinion.
🧠 The Smartest Move? Speak to a Professional Broker
At Mynt Financial, we don’t just compare rates. We build loan strategies that work for your lifestyle.
Before you fix, float, or split, let’s look at:
- What your goals are in the next 1 to 5 years
- How long you’ll be in the property
- Your budget and repayment comfort zone
- Any planned changes like maternity leave, renovations, or an upgrade
With access to 60+ lenders and award-winning advice, we’ll help you make the choice that’s right for you, not just what’s trending.
📲 Book your home loan review today and let’s explore your fixed vs variable options.
Let’s make your loan work smarter starting now.
Disclaimer: This article is general in nature and does not constitute personal financial advice. Loan types, rates, and structures should be considered carefully with a licensed mortgage broker or financial advisor based on your unique situation.
