Fixed vs variable mortgage rates
Compare rate certainty, payment behaviour, and what can change during the term.
The key difference
A fixed rate stays the same during its term. A variable rate can change. With variable mortgages, whether the payment changes depends on the payment structure; a fixed payment does not mean a fixed interest rate.
| Consideration | Fixed rate | Variable rate |
|---|---|---|
| Rate during the term | Agreed rate stays fixed. | Rate may rise or fall. |
| What to ask | What happens if I end the term early? | Does my payment adjust, and what happens if it no longer covers the interest? |
Questions to take to the lender
- Request a written explanation of payment changes and early-exit charges.
- Compare the same term and qualification category before comparing the numbers.
Explore the published products
Sources and scope
General information for comparing options. Product terms and individual eligibility must be confirmed with the lender.
Continue exploring
Three-year vs five-year fixed mortgages
Compare when you will need to renew, rather than assuming the lower starting rate wins.
Open vs closed mortgages
Compare repayment flexibility and the conditions attached to paying a mortgage off early.