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Fixed or Variable? How to choose the right loan structure in Perth (2025 Guide)
- Thomas Rochford
- Aug 13, 2025
- 2 min read
When interest rates are shifting and the economy feels uncertain, one of the biggest questions Perth homeowners ask is:
“Should I fix my home loan rate or keep it variable?”
The truth is, there’s no one-size-fits-all answer — it depends on your financial goals, how much flexibility you need, and your comfort with change.
At Perth Mortgage Group, we connect you with experienced mortgage brokers who can help you compare your options and find the right fit.
What is a fixed rate home loan?
A fixed rate loan means your interest rate stays the same for a set period (usually one to five years). Your repayments won’t change during that time, no matter what happens to rates.
Benefits of a fixed rate loan:
Certainty of repayments — great for budgeting and planning ahead
Protection from rate rises — repayments stay stable even if the market changes
Peace of mind — no surprises during your fixed term.
Things to keep in mind:
Less flexibility for extra repayments
Break costs if you refinance or sell before the fixed term ends
Could miss out on savings if rates drop
Some lenders limit redraw or offset access.
What is a variable rate home loan?
A variable rate loan means your interest rate can move up or down over time. While this creates some uncertainty, it can offer more flexibility and loan features.
Benefits of a variable rate loan:
Flexibility to make extra repayments or pay off early
Access to features like offset accounts and redraw
Easier to refinance or switch if a better deal comes along.
Things to keep in mind:
Repayments can rise if interest rates go up
Harder to predict your long-term costs.
What about split loans?
A split loan combines both options. Part fixed, part variable, giving you some security while keeping flexibility.
Why people choose it:
Balances stability with adaptability
Popular with borrowers who want to “hedge their bets”
Works well for variable income while keeping part of the loan stable.
Which loan type might suit you in 2025?
You might prefer a fixed rate if you:
Like predictable repayments
Expect interest rates to rise
Have a tight budget and want certainty
You might prefer a variable rate if you:
Want flexibility and full loan features
Are comfortable with changing repayments
Plan to make extra repayments or refinance soon
Final thought
The right choice depends on your lifestyle, goals, and comfort with risk.
Perth Mortgage Group can connect you with a broker who'll help you compare fixed variable, and split home loan options from a wide range of lenders, so you can make a confident, informed decision.
