Fixed or variable loan?

A fixed-rate home loan is a type of mortgage where the interest rate is set for a specified period of time and does not change, regardless of changes in the market interest rates. This means that the repayments remain the same for the duration of the fixed period, providing certainty and stability for the borrower.

On the other hand, a variable rate home loan is a type of mortgage where the interest rate can change based on changes in the market interest rates. This means that the repayments may increase or decrease over time, providing more flexibility and potential for lower repayments, but also more uncertainty and risk.