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Fixed Rate versus Variable Rate Loans

Fixed rate loans

A fixed rate loan maintains the same interest rate over a set period of time, regardless of market fluctuations in interest rates.


A fixed rate home loan can offer stability for those budget conscious borrowers wanting to take a medium-to-long term position on a fixed rate. It can also protect borrowers from the volatility of potential rate movements.


Fixed rates are rates locked in for a prearranged period between you and your lender – this could be a term of one to ten years, depending on the lender. Three and five-year terms are generally the most popular for borrowers because a lot can change in that time.




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