Whether you opt for a fixed or variable interest rate will depend on several factors. Find out what works best for you thanks to RAMS' practical analysis.
A fixed rate home loan means the interest rate stays the same for a set period of time. You’ll have the security of knowing what the repayments are during the fixed rate period, so you can budget accordingly.
Conversely, with a variable rate home loan, the interest rate can change, which in turn impacts your repayments. While interest rates may often move in line with the Reserve Bank’s movement of the official cash rate, a lender can change its variable interest rates at any time.
Then again, you might want a combination of both and split your home loan to make it part fixed and part variable.