Interest rates are one of the biggest factors affecting your home loan—but they can also be confusing.
Fixed vs Variable Rates
- Variable rates can move up or down depending on market conditions
- Fixed rates lock in your repayments for a set period
Each option has its pros and cons depending on your goals and risk tolerance.
When Rates Rise
If rates increase:
- Your repayments may go up
- Borrowing capacity may decrease
- Budgeting becomes more important
When Rates Fall
If rates drop:
- You may have an opportunity to refinance
- You can reduce repayments or pay down debt faster
Should You Review Your Loan?
If it’s been more than 12–18 months since your loan was set up, it might be worth reviewing. Lenders frequently update their products, and better options may be available.