Is a fixed or variable rate better?

This depends on your personal situation and preferences.

If you have a tight budget and you’d prefer the security of knowing exactly how much your repayments will be every month, then a fixed rate home loan locked in for a set period may suit you better (depending on the market conditions that apply at the time).

Or if you don’t mind your interest rate going up or down according to market fluctuations then a variable rate loan might be a better option. Variable home loans often come with features that can help you pay it off quicker (such as an offset account), however our Tiimely Own home loan offers offset features with both our variable and fixed rate home loans.

Or if you can’t decide whether to go with a fixed or variable rate, you can ask your lender about splitting your loan by assigning a certain portion to a variable rate home loan and the rest to a fixed rate home loan.