One of the most common questions Jenny hears is whether to fix a home loan, keep it variable, or do a bit of both. There’s no single right answer. It depends on what matters most to you, whether that’s certainty, flexibility or a mix.
In this video, Jenny walks through how each option works. A fixed rate locks in your repayments for a set period, which can make budgeting easier, but it can limit extra repayments and may involve break costs if you change the loan early. A variable rate can move up or down over time, and often comes with more flexibility, such as an offset account or redraw.
A split loan divides your loan into a fixed portion and a variable portion, so you get some of each. This video is general information only and doesn’t recommend one option over another.
What we’ll cover
- How fixed and variable rates work
- The trade-off between certainty and flexibility
- Break costs, extra repayments, offset and redraw
- How a split loan combines both
- Questions to ask before you decide
This information is general in nature and does not take into account your objectives, financial situation or needs. Lending criteria, terms, fees and charges apply and vary between lenders. Speak with us for advice about your circumstances.