Variable rates
A variable rate can move up or down with the lender. Variable loans often allow extra repayments and offset accounts, which can reduce interest and add flexibility.
Fixed rates
A fixed rate locks your repayment for a set term, commonly one to five years. That certainty helps budgeting, but extra repayments are often capped, and breaking a fixed loan early can cost money.
Split loans
Some borrowers fix part of the loan and keep part variable. It is a way to balance certainty and flexibility, though it adds a little complexity.
Questions to ask
How long do I need certainty for? Will I want to pay extra or use an offset? Might I sell or refinance within the fixed term? What happens to the rate when the fixed period ends? Nobody can reliably predict rates, so choose the structure that suits your circumstances.