📊 Fixed or Variable — What’s the Smarter Move in 2026?
With interest rates shifting over the past few years, many Mackay homeowners are asking the same question:
Should I fix my home loan — or stay variable?
The answer isn’t about predicting the market perfectly.
It’s about choosing the structure that suits your financial situation and risk tolerance.
Let’s break it down.
🔒 What Is a Fixed Rate Loan?
A fixed rate locks in your interest rate for a set period (usually 1–5 years).
Benefits:
✔️ Repayment certainty
✔️ Protection from rate increases
✔️ Easier budgeting
Considerations:
Fixed loans suit borrowers who value stability and predictability.
🔄 What Is a Variable Rate Loan?
A variable rate moves up and down with the market.
Benefits:
✔️ Flexibility
✔️ Unlimited extra repayments (in most cases)
✔️ Offset account options
✔️ Ability to refinance easily
Considerations:
Variable loans suit borrowers comfortable with movement who want flexibility.
📍 What Should Mackay Borrowers Consider in 2026?
Instead of trying to “time” rates perfectly, ask:
How tight is my household budget?
Would rate rises cause financial stress?
Do I want flexibility to pay extra?
Am I planning to sell or refinance soon?
For some homeowners, a split loan (part fixed, part variable) offers balance — combining certainty with flexibility.
🧠 It’s Not Just About the Rate
Many borrowers focus purely on interest rate — but structure matters just as much.
Things to review:
Offset vs redraw
Loan features
Long-term plans
Investment goals
Refinance flexibility
A slightly lower rate isn’t always the better loan if the structure doesn’t suit your needs.
🤝 Reviewing Your Loan in 2026
If you haven’t reviewed your home loan in the past 12–18 months, now is a smart time to reassess.
Even if you don’t switch lenders, restructuring your loan could improve flexibility or reduce long-term costs.
Every borrower’s situation is different — and the right choice depends on your personal financial position.
If you’d like to explore your options, we can help you compare fixed, variable and split loan scenarios properly — so you can move forward with confidence.
