Let's cut through the noise.
Every second client asks me this: "Should I go fixed or variable?" And every time, my answer starts the same way — it depends on what you're trying to do.
But here's what I can tell you about where things sit right now, and how to think about it properly.
Where rates are at in 2026
The RBA has started easing after a brutal run of hikes — I covered this in detail in my March 2026 RBA rate update. Variable rates are coming down, and fixed rates are sitting in an interesting spot — lenders are pricing in future cuts, so some fixed rates are actually lower than variable right now.
That doesn't automatically mean fixed is the play. Here's why.
Fixed rates — the case for locking in
What you get:
- ✓ Certainty. Your repayments don't move for 1–5 years
- ✓ Easier to budget — you know exactly what's going out each month
- ✓ Peace of mind if you're worried rates might go back up
The trade-off:
- × You're locked in. If rates drop further, you're stuck paying more
- × Break costs can be brutal if you need to sell, refinance, or pay it off early
- × Most fixed loans limit extra repayments (usually capped at $10k–$20k/year)
Fixed works well if you're on a tight budget, you've just bought your first place, or you just want to sleep at night knowing your repayments won't change.
Variable rates — the case for flexibility
What you get:
- ✓ Full flexibility — make extra repayments, use an offset account, redraw anytime
- ✓ You benefit immediately when rates drop
- ✓ No break costs if you want to refinance or sell
The trade-off:
- × Your repayments move when the RBA moves
- × Harder to budget if you're tight on cash flow
- × If rates go up again, so do your repayments
Variable suits you if you've got some buffer, you want to smash your loan down faster, or you might sell or refinance in the next couple of years.
What about a split?
You don't have to pick one. A lot of my clients split their loan — say 50/50 or 60/40 — so they get the certainty of fixed on part of it and the flexibility of variable on the rest.
It's not flashy, but it's practical. And practical is what actually works.
So what should you do?
Honestly? Don't pick based on what some article tells you (even this one). Your situation — your income, your plans, your risk tolerance — is what drives the decision.
That's literally what I do. I look at your full picture, compare what 30+ lenders are offering right now, and tell you straight which structure makes sense for you.
No cost. No pressure. Just a straight conversation.