What’s the difference between a fixed and variable rate home loan?


A fixed rate loan means that the interest rate, which applies to your loan, will stay the same for the fixed rate period. For example, if you take out a 3-year fixed rate home loan, the interest rate will be the same throughout the 3-year term, which means you know exactly what your repayments will be during that term.

A variable rate loan means that the interest rate could change throughout the life of the loan.