Whether to fix your rate or stay variable if you have a lot of debt

"Is this a good interest rate?” is one of the most common questions homeowners and property investors ask.

The truth is, everyone’s rate can look different.

Your interest rate can depend on your credit score, repayment history, debt levels, equity, assets, loan type, and overall financial position.

And if you’re on a variable rate, RBA decisions can also play a role. When rates move up or down, lenders may pass those changes on to borrowers.

The tricky part? No one has a crystal ball.

We can’t perfectly predict inflation, global events, or future rate movements. That’s why choosing whether to stay variable or lock in a fixed rate depends on your personal situation, your risk tolerance, and what gives you peace of mind.

In a high-rate environment, locking in may not always feel ideal, but if rates were to drop significantly, fixing could become more appealing for some people.

The key is to understand your options, compare your current rate, and make a decision based on your goals, not panic.

Always seek personalised advice before making changes to your loan.

General advice only.

Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).