Fixed vs Variable Rates: Which One is Right for You?
Buying your first home? You’ve probably already been asked:
“Do you want a fixed or variable rate?”
Cue blank stare.
At Nude Home Loans, we get that this stuff isn’t obvious. That’s why we explain it the way a good mate would — without jargon, without pressure, and with actual real-life context.
Let’s break it down.
What’s a Fixed Rate Loan?
A fixed rate means your interest rate stays the same for a set period — usually 1 to 5 years.
🔄 Pros:
You know exactly what your repayments will be
Great for budgeting and peace of mind
Protects you if rates go up
❌ Cons:
Less flexible: harder to make extra repayments
You might miss out if rates drop
Break fees can be steep if you need to exit early
Best for: First home buyers who love certainty and don’t want surprises.
What’s a Variable Rate Loan?
A variable rate means your rate can go up or down, depending on the lender and market conditions.
🌟 Pros:
Usually more flexible with extra repayments and redraw
You could pay less if rates fall
Easier to refinance
❌ Cons:
Your repayments can change at any time
Budgeting can be trickier if rates rise
Best for: Buyers who are comfy with change and want more flexibility.
What About a Split Loan?
A split loan lets you do both — part fixed, part variable.
Example:
Fix 60% of your loan (stable repayments)
Keep 40% variable (extra repayments + redraw flexibility)
It’s a way to get the best of both worlds. And we can help you figure out the right mix.
Real-Life Examples
👨💼 Meet Jack (Fixed Fan)
Jack’s a first home buyer who wants to lock in a stable repayment. He’s a planner. Fixed gave him peace of mind for 3 years while he got settled.
👩💼 Meet Emma (Variable Explorer)
Emma works in creative and likes having flexibility. She made extra repayments whenever she could and loved having redraw access.
👨💼+ 👩💼 Meet Chris & Ali (Split Squad)
They fixed 70% of their loan for certainty and kept 30% variable to smash down extra debt when they had extra income.
How to Choose What Works for You
Ask yourself:
Do I need predictable repayments?
Will I want to make extra payments?
How do I handle change and uncertainty?
Do I plan to refinance or move in the next few years?
Still not sure? That’s where we come in.
Let Nude Help You Choose Your Loan Strategy
We don’t just throw options at you — we help you figure out what actually works for your life.
👉 [Book a free loan strategy session with Nude Home Loans]
We’ll walk you through your fixed vs variable options, show you the real numbers, and help you make a confident call.
No jargon. No pressure. Just clear advice that suits your style.
