Fixed vs Floating Home Loans: Which Mortgage is Right for You?

Aswin Baskaran
Jul 5
1 min read

One of the biggest questions borrowers ask is whether they should fix their mortgage or choose a floating interest rate.

The answer depends on your financial goals.

Fixed Rate

Pros:

Repayments stay predictable
Protection if interest rates rise
Easier budgeting

Cons:

Break fees if you repay early
Less flexibility

Floating Rate

Pros:

Make extra repayments
Refinance anytime
Greater flexibility

Cons:

Interest rates can increase
Monthly repayments may change

Should You Split Your Loan?

Many homeowners split their mortgage between fixed and floating to get the best of both worlds.

A mortgage broker can help structure your loan based on your plans.

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Fixed Rate

Floating Rate

Should You Split Your Loan?

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