Fixed rate loan
A fixed rate loan means your interest rate stays the same for a set period - usually between 1 to 5 years.
Why choose it?
- Your repayments won’t change during the fixed term
- Great for budgeting and financial certainty.
Things to consider:
- You may face fees if you want to make extra repayments
- Less flexibility if your financial situation changes.
Variable rate loan
With a variable rate loan, your interest rate can go up or down over time, which means your repayments may change too.
Why choose it?
- More flexibility to make extra repayments
- At BankVic you can also choose an Offset Variable Home loan to access features like linking to offset accounts, which can reduce the interest you pay.
Things to consider:
- Repayments can increase if interest rates rise
- Less loan repayment predictability compared to fixed rates.
Split loan
Can’t decide between fixed and variable? A split loan lets you combine both.
Why choose it?
- Fixed portion gives you repayment certainty
- Variable portion offers flexibility and extra repayment options.
Things to consider:
- You’ll need to manage two loan components
- May not suit everyone, but it’s a great way to hedge your bets.
Ready to take the next step?
Reach out to our BankVic Home Loan Mentors to help you find out what type of home loan in right for you.
We’re here to help
If you have any questions about buying your first home, visit www.bankvic.com.au/home-buying/first-home-buying, call 13 63 73 or visit www.bankvic.com.au/book-appointment to make an appointment with a BankVic Home Loan Mentor.
