Rates & strategy · 6 min read · 28 April 2026
Fix or float? How to think about your rate in 2026
There's no universally 'right' answer — only the right answer for your situation. Here's a simple framework for deciding.
Whenever rates move, the same question lands in our inbox: should I fix or float? The honest answer is that it depends on your goals, your cash flow, and how much certainty you want.
Floating gives you flexibility — you can make lump-sum repayments without penalty and you're not locked in. The trade-off is that floating rates are usually higher and can move at any time.
Fixing gives you certainty for the term you choose. Your repayments won't change, which makes budgeting easier. The trade-off is reduced flexibility, and break fees can apply if you repay or refinance early.
A common approach is to split your loan — fixing a portion for certainty while keeping some floating for flexibility. The right split depends on your plans over the next one to three years. This is general information, not personalised advice; we'll tailor a recommendation to your situation.
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