When should I fix versus going variable?

Many consumers are unaware that the variable rates move differently to fixed rates and by the time variable rates have bottomed they have missed the best opportunity to secure a fixed home loan rate.


While variable interest rates are influenced by the Reserve Bank, fixed rates are quite different. Fixed rate pricing is driven by those who invest in the fixed rate wholesale markets.

If you are considering fixing your home loan but don’t know when to make the move, the lowest fixed home loan rates are generally available when variable interest rates are between three and nine months off hitting their bottom. Keep in mind that there are often specials available on fixed home loan rates that may also make this option more attractive to you.

As many people opt for a fixed home loan rate for the certainty it provides over repayment amounts, you should consider fixing your home loan whenever the loan terms, conditions and features are suitable for your situation.

It’s important to always consider your financial situation and motivation for fixing to determine if a fixed rate home loan is the right choice for you, regardless of the interest rate environment at the time.

If you require certainty of mortgage repayments, fixing all or part of your home loan is certainly an option worth considering. Your mortgage adviser will assist you in finding a suitable fully or partially fixed home loan rate with the right structure at any time you need one.

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