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The biggest decision after how much to borrow is whether to fix your rate. Here's the core difference:Variable rate: Moves up and down with the market. Currently averaging 6.22% for owner-occupiers.Fixed rate: Locked in for 1–5 years. Currently 5.89%–6.40% depending on term.In ea
As of 2026, approximately 15–20% of outstanding home loans are fixed, down from the peak of 40% during the 2021 fixed-rate boom. Most borrowers are now on variable or have reverted from expired fixed terms.
Yes, but you'll likely pay break costs — the lender's calculation of their loss from ending the fixed contract early. Break costs can range from a few hundred dollars to $50,000+ on large loans with significant rate differences. Always ask for the break cost estimate before deciding.
Your loan automatically reverts to the lender's standard variable rate, which is typically higher than advertised rates. This is the most important time to negotiate, refinance, or refix. Set a calendar reminder 3 months before expiry.
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