This guide explains the three main types of home loans in Australia — variable, fixed, and split — including their pros, cons, and when each might be suitable.
Fixed rate loans – lock in a set interest rate for 1–5 years, giving repayment certainty and easier budgeting, but with limits on extra repayments, offset, and the risk of break costs.
Variable rate loans – rates move with the market, offering flexibility (extra repayments, redraw, offset accounts) and no break costs, but repayments can rise if rates increase.
Split loans – combine fixed and variable portions (e.g. 50/50) for a balance of certainty and flexibility, though with separate repayments and some limits on the fixed portion.
Key comparison table – shows differences between basic variable, standard variable, fixed, and packaged loans, including rates, fees, offset availability, redraw, and break costs.
Whether you’re after repayment certainty, flexibility, or a mix of both, this guide helps you understand your options and compare loan features side by side.
Credit Guide