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Fixed or variable home loan?
Choosing between a fixed or variable home loan will largely come down to your financial situation and how likely it is that you may need to change the loan structure in the future, along with your need for flexibility and security.
Fixed rates guarantee you pay the same interest rate for a set period of years, which is great for budgeting and will mean you're not affected if market rates increase. However, you can also miss out on savings if interest rates decline after you lock in your current rate. There's usually less flexibility too as often you can't make additional repayments (without incurring a fee) and you may incur significant costs if you decide to change home loans before the fixed rate period expires.
Variable rates usually provide flexibility to make additional repayments with no additional costs and provide access to your extra payment funds via a redraw facility. You also have the chance to benefit from falling interest rates, but this means you are vulnerable to sudden increases in rates, making it harder to budget.
A number of loans allow you to fix part of the loan so you can benefit from both options. Before you make any decision regarding a fixed or variable home loan, always look closely at your current financial situation and your future goals. Think about your need for repayment certainty and flexibility.