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Standard variable & fixed rate loans.

The variable rate loan offers more features and flexibility than the basic fixed rate loan, so the rate is usually slightly higher.

Standard variable & fixed rate loans.

The variable rate loan offers more features and flexibility than the basic fixed rate loan, so the rate is usually slightly higher.

What is a fixed rate loan?

Fixed rate loans are set at a fixed rate for a specified period – usually one to five years. This gives you the advantage of knowing how much your repayments will be, allowing you to organise your finances without the risk of rising interest rates. However, this advantage is offset by the possibility of not benefiting from a drop in rates.

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What is a fixed rate loan?

Fixed rate loans are set at a fixed rate for a specified period – usually one to five years. This gives you the advantage of knowing how much your repayments will be, allowing you to organise your finances without the risk of rising interest rates. However, this advantage is offset by the possibility of not benefiting from a drop in rates.

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Need help?

Talk to a specialist

Need help?

Talk to a specialist

Need help?

Talk to a specialist

Need help?

Talk to a specialist

Understanding variable and fixed rate home loans.

When choosing a home loan, it’s essential to understand how the type of interest rate variable or fixed can impact your financial flexibility and long-term plans. Here’s an overview to help you decide which option might work best for you.

Variable rate loans

Fixed rate loans

Variable rate loans

Fixed rate loans

Benefits

  • Flexibility

    These loans offer greater flexibility, allowing you to make additional repayments or increase your loan amount for purposes like renovations.

  • Potential savings

    If interest rates decrease, your repayments may reduce as well, saving you money immediately.

  • Expense certainty

    Fixed rates ensure consistent repayments, offering peace of mind and easier budgeting, especially in times of economic uncertainty.

  • Protection from rate rises

    Fixed rates shield you from potential rate hikes, which can result in significant savings if rates increase during your fixed term.

Considerations

  • Impact of rate increases

    In a rising interest rate environment, your repayments can increase, affecting your monthly budget.

  • Uncertainty

    The unpredictability of rate changes can make financial planning and budgeting more challenging.

  • Limited flexibility

    Fixed loans often come with restrictions, such as penalties for early repayments or fees for breaking the loan term to refinance.

  • Revert rate

    Once the fixed term ends, the loan often reverts to a higher variable rate, increasing your repayments unless you refinance.

  • Missed rate reductions

    If variable rates drop during your fixed term, you won’t benefit from lower interest rates, potentially costing you more.

Benefits

Flexibility

These loans offer greater flexibility, allowing you to make additional repayments or increase your loan amount for purposes like renovations.

Expense certainty

Fixed rates ensure consistent repayments, offering peace of mind and easier budgeting, especially in times of economic uncertainty.

Potential savings

If interest rates decrease, your repayments may reduce as well, saving you money immediately.

Protection from rate rises

Fixed rates shield you from potential rate hikes, which can result in significant savings if rates increase during your fixed term.

Considerations

Impact of rate increases

In a rising interest rate environment, your repayments can increase, affecting your monthly budget.

Limited flexibility

Fixed loans often come with restrictions, such as penalties for early repayments or fees for breaking the loan term to refinance.

Uncertainty

The unpredictability of rate changes can make financial planning and budgeting more challenging.

Uncertainty

The unpredictability of rate changes can make financial planning and budgeting more challenging.

Missed rate reductions

If variable rates drop during your fixed term, you won’t benefit from lower interest rates, potentially costing you more.

Industry of experts

Ongoing support

30 years experience

Industry of experts

Ongoing support

30 years experience

Industry of experts

Ongoing support

Which option is right for you?

Deciding between variable and fixed rate loans depends on your financial goals, risk tolerance, and need for flexibility. At Apex Financial, our advisors can help you evaluate your options and choose the best solution for your circumstances.

Get in touch

Which option is right for you?

Deciding between variable and fixed rate loans depends on your financial goals, risk tolerance, and need for flexibility. At Apex Financial, our advisors can help you evaluate your options and choose the best solution for your circumstances.

Get in touch

Ready to explore your options?

Contact us today.

Ready to explore your options?

Contact us today.