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Fixed vs Variable … Which is better ???

November 14, 2012 in Insider Tips, Latest News, Rate Cuts, Rate Rises by admin  |  Comments Off on Fixed vs Variable … Which is better ???


One of the most common questions asked by Home Loan customers is whether they would be better served with a Fixed Interest Rate or a Variable Interest Rate.

The first step to seeking an accurate answer to this question is to understand that each borrower / family have differing financial requirements and priorities thus there can be no “One Right Answer” that will apply to all.

Listed below is a brief summary of the Advantages & Disadvantages of Variable & Fixed Interest Rates plus several Insider Tips which may assist you to determine the best Home Loan structure to suit you and your family.

Fixed Interest Rates


  1. Immune from higher interest charges due to rising interest rates
  2. Comfort of knowing your loan repayments cannot change for the entirety of the fixed rate term
  3. Current fixed interest rates are priced at record low levels


  1. Restrictions or penalties may apply if you wish to make additional repayments to your Home Loan
  2. Borrowers may not have the ability to redraw any surplus funds from their Home Loan
  3. Significant penalties may apply if the Home Loan is repaid in full within the fixed rate term


Variable Interest Rates


  1. Most flexible type of Home Loan
  2. Interest charges and loan repayments will reduce if interest rates fall
  3. Additional repayments can be made at anytime thus reducing interest costs and assisting you to pay off your loan sooner
  4. Redraw is available
  5. 100% Offset Account can be linked to your Home Loan (if available)
  6. All or part of your Home Loan can be converted to a fixed interest rate at any time


  1.  Loan repayments will increase if interest rates rise


Insider Tips

  • Home Loans can include a combination of Fixed & Variable Rates to enable you to achieve the benefits of both


  • NEVER select a Fixed Rate term that will exceed your known plans and strategies


To request assistance from an experienced Mortgage Specialist simply click on CONTACT US

or phone (07) 5527 4744




Posted in Insider Tips, Latest News, Rate Cuts, Rate Rises.