Choosing between a fixed and variable rate is one of the biggest decisions you'll make when refinancing. Each has distinct advantages depending on your financial situation and outlook.
Fixed Rate Pros
- Certainty of repayments
- Protection from rate rises
- Easier budgeting
Variable Rate Pros
- Usually lower starting rate
- Benefit when rates fall
- More flexible features (offset, extra repayments)
The Split Option
Many borrowers choose a split loan -- fixing part of their mortgage while keeping the rest variable. This provides some certainty while maintaining flexibility.