What is the alternative to a fixed home loan?

If a fixed home loan isn't for you, there is another option; variable rates. Variable interest rates aren't fixed, and instead fluctuate as the market and lender interest rates change.

A rate allows your mortgage repayments to increase or decrease, depending on the interest rates. So they offer the advantage of making the most of lower interest rates but also come with the risk that the rate will increase when interest rates are higher. Since the mortgage repayments are not locked in, it can be harder to budget for your repayments with certainty.

If you’re considering a variable rate, it's wise to understand that future changes in interest rates may impact your future repayments.