Fixed Rate Loans
A fixed interest rate stays the same for a set period.
Benefits
- Predictable repayments
- Protection from interest rate increases
Considerations
- Less flexibility
- Break costs may apply
Variable Rate Loans
A variable rate can change depending on market conditions.
Benefits
- More flexibility
- Often includes features like offset accounts
Considerations
- Repayments may increase if interest rates rise
Choosing the Right Option
The right loan depends on your financial goals and risk tolerance.
