Fixed vs Variable Loans: Questions to Ask Your Broker
Choosing between a fixed and variable home loan isn’t a decision you want to make based on headlines, gut feel, or what a bank branch suggests.
A good broker should help you think through how each option actually fits your situation — not just quote today’s rates.
These are the key questions you should be asking your broker before deciding.
How Will This Loan Structure Affect Me Day to Day?
Ask how fixed or variable repayments will impact your monthly cash flow.
This helps you understand whether certainty or flexibility matters more in your real-life budget — not just on paper.
What Happens If Interest Rates Change?
Rather than trying to predict the market, ask:
- How would rate rises affect my repayments?
- How much movement can I comfortably absorb?
A good broker will walk through realistic scenarios, not worst-case scare tactics.
How Much Flexibility Will I Lose If I Fix?
Not all fixed loans are the same.
Ask about:
- Limits on extra repayments
- Offset account availability
- Restrictions during the fixed period
Understanding these upfront avoids frustration later.
What Are the Break Costs If My Plans Change?
This is a critical question many borrowers skip.
Ask how break costs work, when they apply, and how expensive they could be if you sell, refinance, or restructure early.
Would a Split Loan Make More Sense for Me?
You don’t have to choose all fixed or all variable.
Ask whether splitting your loan could:
- Provide repayment certainty
- Maintain access to offset accounts
- Reduce risk if rates move
How Does This Choice Affect My Ability to Refinance Later?
Ask how easy (or difficult) it will be to change lenders or restructure your loan in the future.
This is especially important if you expect your circumstances to change.
What Happens When the Fixed Period Ends?
Fixed loans don’t last forever.
Ask:
- What rate the loan reverts to
- What my options are at that point
- When we should review the loan
How Will This Choice Support My Long-Term Plans?
A good broker looks beyond today.
Ask how the recommended option aligns with:
- Your future income changes
- Family or lifestyle plans
- Long-term debt reduction goals
What Would You Do If You Were in My Position?
This question often cuts through generic advice.
A thoughtful answer shows whether the recommendation is genuinely tailored to you.
Why These Questions Matter
Fixed vs variable isn’t about being right or wrong — it’s about choosing a structure you won’t regret if circumstances change.
Asking the right questions helps ensure the decision is based on strategy, not fear or guesswork.
Want Clear Answers Before You Decide?
If you’re weighing up fixed, variable, or a split loan and want practical guidance, we’re happy to talk it through.
No pressure — just clarity.
The best loan decisions start with the right questions.
