Fixed vs Variable Interest Rates: What’s Right for You?

By Anu Kamal · 28 February 2026

With so many headlines about interest rates, it’s no surprise that my clients are asking:

“Should I fix my rate or go variable?”

The truth? There’s no one-size-fits-all answer. The right choice depends on your goals, risk tolerance, and financial situation.

Fixed vs Variable: What Are People Doing?

Right now, I’m seeing a 50/50 split:

Fixed Rate

Locks in your repayments for a set period
Provides certainty and easier budgeting
Protects you if rates rise

Variable Rate

Moves up or down with the market
Offers flexibility (often with extra repayments or redraw options)
Allows you to benefit if rates decrease

Both options have advantages, it simply comes down to what suits your lifestyle and plans.

What’s Happening in the Market?

Some fixed rates are currently very competitive. However, predicting what the Reserve Bank of Australia (RBA) will do next is difficult.

Will rates fall?
Will they stay steady?
Could they increase again?

Since no one can say with certainty, making a strategic decision based on your circumstances is more important than trying to time the market.

A Balanced Approach

For some borrowers, a split loan (part fixed, part variable) offers the best of both worlds, combining repayment certainty with flexibility.

The key is understanding your options clearly before committing.

Let’s Talk

Whether you’re buying, refinancing, investing, or simply reviewing your current loan, the team at AFS is here to help you make an informed decision.

Reach out today to discuss the right interest rate strategy for you.

Making the right choice now can give you confidence and clarity for the future.