Fixed Rate or Variable Rate?

First - the basics. When you take out a Mortgage or Home Loan, you can choose to have an interest rate that is fixed, variable, or split (a combination of the two). There is no right or wrong option - it all depends on your circumstances.

Fixed Rate Home Loans

With the Fixed Rate Home Loan, the interest rate on your Mortgage doesn't change for an agreed period (usually 1-5 years) - no matter what happens to official interest rates.

Variable Rate Home Loans

With the Variable Rate Home Loan, the interest rate on your Mortgage can change. If official interest rates go down, your interest rates go down too. However, if the Reserve Bank increases interest rates, your Home Loan rate will probably rise too.

Split Rate Home Loans

A Split Rate Mortgage combines elements of the Fixed Rate and Variable Rate options. e.g. You can have 80% of your Home Loan at a Fixed Rate , while the remaining 20% is at an interest rate that varies with the market.

Is it the right time to Fix Interest Rates?

It's complicated and confusing. It's hard to predict whether rates will go up or down during the current economic climate, but you should never try "to catch" the lowest rate. Just evaluate your situation: if you want confidence that you can meet your Mortgage repayments and current fixed rate suits your budget - go and fix it!

Finding the best fixed rate is another problem. Although we tried our best with Rate Detective's rates comparison tool there are always various deals and discounts provided by lenders which change constantly...

The good news - we have experienced and MFAA certified brokers who already have knowledge about latest products offers, can evaluate your situation and help to choose the best product for you! And all of that for free! Just fill in the Enquiry Form on the right and a broker will call you back at a time convenient for you.