Fixed and variable – fast facts
- The lowest variable rate available on Finder right now is 2.79%.
- The lowest fixed rate available on Finder right now is 2.69%.
- Fixed rate mortgages only make up around 20-25% of all mortgages (source).
Australian mortgages can have either fixed or variable interest rates. Variable interest rates can change at any time (up or down) and tend to offer lower rates and more flexibility. Fixed interest rates cannot go up (or down) for the fixed period (usually 1-5 years) but have less flexibility. When the fixed period ends the loan reverts to a variable rate.
Read on to find out more about the differences between fixed and variable rates.
Both variable and fixed rates have strengths and weaknesses and it all depends on your needs as a borrower. It's usually a trade-off between flexibility on the one hand and certainty on the other.
|Fixed rates||Variable rates|
The real question is what do you want from your home loan. This helps you decide which rate type suits you best. Here are some examples to help you think about your own situation.
If you really like the idea of fixing your interest rate, but you don't want to lose the flexible features available on your variable loan, you can choose to split your home loan. A split rate home loan is when you divide your loan into two (or more) portions; one locked into a fixed rate and the other variable. This lets you enjoy some of the advantages of both rate types at the same time.
Online only cashback offer: Refinancers borrowing $250,000 or more can get a $4,000 cashback for their first application (Other terms, conditions and exclusions apply). Buyers and refinancers can get this competitive variable interest rate. Application fee waived for loans above $150,000.
Take advantage of a low-fee mortgage with a special interest rate of just 2.84% p.a. and a 2.84% p.a. comparison rate.
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.
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