Choosing the right type of interest rate for your home loan can make a big difference to your finances and peace of mind. Should you go fixed, variable, or consider a combination? At Goodlend, we don’t have a crystal ball but we’ll try and help you understand your options to choose what you think is right for you.
What Is a Fixed Rate Loan?
A fixed rate locks in your interest rate for a set period, usually 1 to 5 years. Your repayments won’t change during that time, making it easier to plan your budget and you might pay a lower rate then the variable rate at the time. The downside? Less flexibility. Extra repayments might be limited, there can be break fees if you want to exit early and you might pay higher rate than the variable rate at the time
What Is a Variable Rate Loan?
With a variable rate, your interest rate can change over time depending on the market. If rates drop, your repayments could too. These loans often include more features, like redraw facilities and offset accounts, plus the ability to pay extra without penalties.
Is a Split Loan Worth Considering?
Split loans let you fix part of your loan and leave the rest variable. This can offer a balance between certainty and flexibility. It’s popular with borrowers who want some protection from rate rises but also want to make extra repayments or access those other features like redraw or offset.
What’s Right for You?
There’s no universal answer. It depends on:
- Your lifestyle and income predictability
- How long you plan to stay in the property
- Whether you value flexibility or certainty more
- Your current interest rate outlook
How Goodlend Helps You Choose
We know that choosing between fixed and variable interest rates isn’t always straightforward, especially when market conditions are shifting. At Goodlend we don’t have a crystal ball for interest rates and that’s why we take the time to walk you through the pros and cons of each, based on your lifestyle, financial goals, and future plans.
Whether you’re planning to renovate, expecting life changes, or simply want to maximise flexibility or certainty, we’ll help you understand the basics of interest rates so you can make the right choice for you. With access to more than 30 lenders, we’ll also ensure the structure and features align with what matters most to you.
It’s not about picking what’s popular in the moment, it’s about choosing what works for you today and into the future. You might find that the peace of mind from a fixed rate outweighs potential flexibility, or you may be in a stage of life where having the freedom to make extra repayments makes a variable rate more appealing. Every borrower is different and your loan should reflect that. We help you weigh up what matters most so your home loan supports your lifestyle, not the other way around.
And with Goodlend, you’ll enjoy extra peace of mind knowing that when your loan settles, we donate a portion of our commission to a cause you care about—so your loan does good, even beyond your home. Talk to us today about tailoring your home loan and interest rates the smart way.
