Choosing between a fixed and variable home loan can feel overwhelming, especially when interest rates are shifting. The right option depends on your goals, risk appetite, and financial situation. At Financia Group, we help you make an informed decision by breaking down the pros and cons of each. 

What Is a Fixed Rate Home Loan? 

A fixed rate loan locks in your interest rate for a set period (usually 1–5 years). This means your repayments won’t change during that time. 

Benefits: 

● Repayment certainty – ideal for budgeting 

● Protection against rate rises 

● Peace of mind in a volatile market 

Things to consider: 

● Limited flexibility (e.g., restrictions on extra repayments) 

● Break fees may apply if you refinance or exit early 

● You miss out on rate drops 

What Is a Variable Rate Home Loan? 

With a variable rate loan, your interest rate can fluctuate based on market conditions. This means your repayments could go up or down. 

Benefits: 

● Greater flexibility – easier to make extra repayments 

● Access to features like offset accounts or redraw facilities 

● Benefit from interest rate reductions 

Things to consider: 

● Monthly repayments can increase if rates rise 

● Budgeting can be harder due to variability 

What About Split Loans? 

Can’t decide? You don’t have to. A split loan lets you fix a portion of your loan and keep the rest variable. It offers a balance of stability and flexibility; ideal for borrowers who want some security while retaining features of a variable loan. 

How Financia Group Can Help 

We assess your income, expenses, risk profile, and long-term plans to recommend the most suitable loan structure. With access to over 30 lenders, we compare options tailored to your needs; whether that’s fixed, variable, or a combination. 

There’s no one-size-fits-all answer when choosing between fixed and variable home loans. The right loan is the one that fits your lifestyle and future plans. At Financia Group, our brokers will guide you through the decision-making process, ensuring you have clarity and confidence in your choice. 

Reach out to us today to discuss the right loan structure for your situation.