Fixed or Variable Home Loan Rates – What I Tell My Clients

As a mortgage broker here at Truth Group, one of the most common questions I get is:
“Should I fix my interest rate or go with a variable home loan?”

There’s no one-size-fits-all answer – and in this post, I’ll explain why.

What is a Fixed Rate Loan?

A fixed interest rate means your rate and repayments stay the same for a set term (usually 1 to 5 years). This gives you budget certainty and shields you from rising rates.

✅ Pros of Fixed Rates:

• Peace of mind
• Easy to budget
• Protection if interest rates rise

❌ Cons of Fixed Rates:

• Break costs if you leave early
• Less flexibility
• No benefit if rates drop

What is a Variable Rate Loan?

A variable rate loan can go up or down, depending on what your lender or the RBA does. These loans often come with extra features, like offset and redraw.

✅ Pros of Variable Rates:

• More flexible
• Usually lower upfront
• Can make extra repayments or refinance easily

❌ Cons of Variable Rates:

• Payments may increase
• Harder to budget long-term

So… What Do I Recommend?

It really depends on your goals.

• If you want certainty, a fixed or split loan might be ideal.
• If you value flexibility, especially as an investor or someone who may refinance, variable can work better.

Many of my clients end up going with a split loan – part fixed, part variable – to balance the benefits of both.

Strategy Matters More Than Timing

You can’t predict rate movements perfectly. What matters more is how your loan is structured around your life.

When I work with clients, I look at:

• Cash flow
• Future plans (refinance, renovate, invest)
• Loan features that add value (offsets, redraw, etc.)

Need Help Deciding?

If you’re weighing up fixed vs variable and want clarity based on your situation, reach out. I’ll walk you through your options and help structure a smart, future-ready home loan.

Contact me or send a message below.