More certainty
Fixed rate
Repayments are more predictable for the fixed period, but break costs, repayment caps and feature limits may apply.
- Fixed term
- Break cost rules
- Extra repayment caps
Rate type
Fixed vs variable loans: compare certainty and flexibility
Fixed, variable and split loans can all work in the right context. The decision is about trade-offs, not which one is universally better.
- Fixed rate certainty
- Variable flexibility
- Split loan trade-offs
Which rate structure are you weighing up?
Choose the structure you want to understand first.
Next check: Fixed rate
Fix part or all of the loan
A fixed loan can provide repayment certainty for a period, but flexibility may be limited.
May suitBorrowers who value budget certainty for a set period.
WatchBreak costs, rate lock fees, extra repayment caps and limited offset or redraw.
Check first
- Fixed term length
- Break cost rules
- Extra repayment limits
- Offset availability
Useful tools
CalculatorRepayment calculatorA broker can compare fixed terms, restrictions and how the loan rolls over after the fixed period.
Certainty to flexibility
Fixed, split and variable sit at different points on the trade-off.
The decision is not fixed versus variable in isolation. It is how much repayment certainty you want to trade for flexibility, feature access and future changes.
Middle ground
Split loan
Part of the loan can be fixed while another part keeps variable features, subject to product rules.
- Split amount
- Fees on each portion
- Feature access
More flexibility
Variable rate
May allow more feature access and easier changes, but repayments can move when rates change.
- Rate movement buffer
- Offset or redraw
- Review plans
Questions to ask before choosing a rate type
Fixed and variable decisions are easier when you separate certainty, flexibility and future change.
What if rates rise?
Check repayment comfort if a variable rate increases, or when a fixed period ends.
What flexibility do you need?
Extra repayments, offset, redraw and refinancing may be easier on some variable loans.
What are the fixed restrictions?
Break costs, repayment caps and feature limits vary by lender and product.
What happens at expiry?
A fixed loan usually needs review before rollover so the repayment and feature position is clear.
Rate type trade-off
Certainty and flexibility behave differently over time.
Fixed, variable and split structures should be compared against your budget, cash access and likely changes during the next few years.
You are weighing up
- A fixed period for repayment certainty.
- Variable flexibility for offset, redraw, extra repayments or review options.
- A split loan when you want part certainty and part flexibility.
Check before choosing
- Break costs, rate lock fees, fixed expiry and rollover rules.
- Offset or redraw access and extra repayment limits.
- Repayment comfort if variable rates rise or a fixed period ends.
Do not assume
- A lower fixed rate today will stay the lower-cost option.
- Every fixed loan has usable offset or redraw.
- Splitting removes rate movement risk or future review work.
Check before you rely on it
Fixed or variable depends on the trade-offs
Do not choose only because one rate looks lower today. The structure has to fit budget, timing, features and lender assessment.
- Fixed loans may have break costs or repayment restrictions depending on the lender and product.
- Variable repayments can change when rates move.
- Calculator results are estimates only and are not approval, credit advice, or a loan recommendation.
Run the numbers before you compare products
Use repayment and offset estimates as preparation for a broker review.
CalculatorHome loan repayment calculatorTest whether a loan amount, rate, term, and repayment type feel workable before taking the numbers further.Best forChecking repayment comfort across purchase, refinance, or rate-change scenarios.Estimate only. A broker still needs to check lender policy and fit.Open calculator CalculatorOffset account calculatorEstimate how money held in offset may reduce interest over time compared with leaving the loan unchanged.Best forChecking whether savings could work harder inside the loan structure.Estimate only. A broker still needs to check lender policy and fit.Open calculator Decision pageCompare loan typesReturn to the decision hub.OpenDecision pageOffset vs redrawUnderstand feature trade-offs before choosing variable or split.Open
Common questions
Fixed vs variable loan questions
Is fixed or variable better?
Neither is automatically better. Fixed can provide repayment certainty for a period. Variable can provide more flexibility. The better fit depends on your budget, timing, features and lender options.
Can I split my loan?
Some lenders allow split loans, where part is fixed and part is variable. The split, fees and features should be checked before relying on that structure.
Can fixed loans have offset accounts?
Some fixed loans may have limited or partial offset, but many have restrictions. Check the exact lender and product rules before relying on offset access.
What are break costs?
Break costs may apply if a fixed loan is paid out, refinanced or changed before the fixed period ends. The amount depends on lender rules and market conditions.
Broker review
Compare fixed, variable and split options
A broker can check repayment comfort, features, fees, lender policy and product restrictions before you choose.