Compare fixed and variable rate options to find the best choice for your situation
Updated October 2026Built and checked by MaverickHow it's calculatedReport an error
Variable rate, a month
$3,260
Lower repayment now
Fixed rate, a month
$3,333
Positive bars = locking in the fixed rate would save you money in that scenario. Negative = variable wins.
Assumes the variable rate stays at today's level: the more it moves, the more these diverge.
Fixed or variable is one of the bigger choices on a home loan. A fixed rate keeps repayments the same for the term, but usually limits extra repayments and can cost a break fee if you leave early. A variable rate moves with the lender's rates and lets you pay extra or use an offset. This puts the two side by side on your numbers.
As of 7 November 2026, the lowest variable home loan rate is 5.93%, from SCCU's BROKER HOME LOAN, while the typical best across 104 institutions is 6.38%. The lowest 3-year fixed home loan rate is 6.24%, from Credit Union SA's 3-Year Fixed 40 Year Home Loan Package, while the typical best across 80 institutions is 6.69%. The RBA cash rate is 4.85%. Those are for an owner-occupier paying principal and interest at an 80% LVR.
Amit has a $520,000 loan and is offered 5.9% fixed for 2 years vs 6.4% variable.
Fixed saves $168/month for 2 years ($4,040 total). If he might sell or refinance within the 2 years, a break cost can apply - it depends on how far fixed rates have fallen since he fixed, so ask the lender how it's worked out.
Chen has a $680,000 investment loan. Fixed is 6.2%, variable is 6.5%. Plans extra repayments.
Fixed saves about $1,600 a year ($4,798 over the fixed term), but fixed loans usually cap or bar extra repayments, so most of Chen's $20,000 a year would need a variable portion. A split loan does both.