The fix-vs-float decision is one of the most common questions we receive. There's no universally right answer — it depends on your financial position, plans, and risk tolerance.
Floating Rate
A floating rate moves with the Official Cash Rate and lender pricing. It offers flexibility — you can make extra repayments or break without penalty. The downside is uncertainty: when rates rise, so do your repayments.
Fixed Rate
Fixing locks in your rate for a set term (typically 6 months to 5 years). You gain certainty and can budget precisely. The trade-off is reduced flexibility — breaking a fixed rate early usually incurs a break fee.
The Current Landscape
In a falling rate environment, many borrowers opt for shorter fix terms (6–12 months) to benefit from further reductions sooner. Others split their loan — fixing a portion for security while leaving some on floating for flexibility.
Our Approach
We analyse your full financial picture — income stability, likely life changes, and total debt — before recommending a structure. Contact us for a free rate review.
