- Your interest rate remains the same over the life of your loan
- Budgeting is made easy as your outgoing costs are the same each month
- Fixed loans don’t offer the breadth of features variable rates do, and you won’t be able to make extra repayments to decrease your loan balance when times are good.
- Your interest rate changes as the Reserve Bank adjusts to economic conditions.
- Variable rates are useful if you’re not worried about fluctuating repayments and want to take advantage of lulls in the economy.
- Interest only repayments this helps cover unexpected expenses or negative cash flow strategies
- Offset accounts let you hold savings in a separate account to credit towards your loan balance which you can access without penalties
- Additional repayments/ redraw means you can use any extra savings on your loan to decrease the balance now and access them later, if needed
- Loan splits allows you to split a portion of your loan between variable and fixed interest rates to reduce the risk of repayment blow out
My Very Best To You Always,