Fixed vs Variable Home Loans: Which One is Better in 2025?

 


🏠 Fixed vs Variable Home Loans: Which One is Better in 2025?

When it comes to securing a mortgage in Australia, the big question many buyers ask is: “Should I go with a fixed or variable rate?” In this article, we break down everything you need to know about Fixed vs Variable Home Loan 2025 — helping you make a confident decision whether you're buying a home 🏡 or investing in a commercial property 🏢.

🔢 Latest Home Loan Interest Rates (May 2025)

Understanding current interest rates is crucial in the Fixed vs Variable Home Loan 2025 debate. Here's a snapshot of the latest rates offered by major banks and non-bank lenders:

🏦 Major Banks

ANZ

  • Variable Rate: 6.19% p.a. (for LVR <70%)
  • Fixed Rates:
    • 1-year: 5.74% p.a.
    • 2-year: 5.64% p.a.
    • 3-year: 5.84% p.a.
    • 4-year: 6.04% p.a.
    • 5-year: 6.04% p.a.

NAB

  • Variable Rate: 6.54% p.a. (LVR ≤60%)
  • Fixed Rates:
    • 1-year: 5.79% p.a.
    • 2-year: 5.74% p.a.
    • 3-year: 5.94% p.a.
    • 4-year: 6.14% p.a.
    • 5-year: 6.14% p.a.

CBA

  • Variable Rate: 6.73% p.a. (LVR 70–80%)
  • Fixed Rates:
    • 1-year: 5.99% p.a.
    • 2-year: 5.79% p.a.
    • 3-year: 5.79% p.a.
    • 5-year: 5.79% p.a.

Westpac

  • Variable Rate: 6.19% p.a. (LVR ≤70%)
  • Fixed Rates:
    • 1-year: 5.99% p.a.
    • 2-year: 5.89% p.a.
    • 3-year: 5.89% p.a.
    • 4-year: 5.89% p.a.
    • 5-year: 5.89% p.a.

🏢 Commercial Loan Rates

ING Commercial Loans

  • Variable Rate: 7.46% p.a.

🏡 Non-Bank Lenders

Athena

  • Variable Rate: 5.99% p.a. (LVR <50%)

loans.com.au

  • Variable Rate: 5.69% p.a.

Pepper Money

  • Variable Rate: 6.29% p.a. (LVR <55%)

✅ Pros & Cons: Fixed vs Variable Home Loan 2025

🔒 Fixed Rate – Pros:

  • Certainty & Stability: Your repayments stay the same, making it easier to budget.
  • Protection from Rate Hikes: If rates rise, you're locked in.

Example:
Emma from Sydney locked a 2-year fixed rate at 4.89% in 2023. While variable borrowers saw rates hit 6% in 2024, her repayments stayed low and predictable. 👏

Cons:

  • Less Flexibility: You might miss out if rates drop.
  • Break Costs: Big fees if you exit early or refinance.

🔄 Variable Rate – Pros:

  • Potential Savings: You can benefit when interest rates fall.
  • Extra Repayments Allowed: Pay down your loan faster without penalties.

Example:
John, a commercial investor in Melbourne, chose a variable rate in 2023. He capitalised on three RBA cuts in 2024, dropping his repayments by over $500/month! 💼💸

Cons:

  • Repayment Uncertainty: Rates can rise unexpectedly.
  • Budget Stress: Harder to predict long-term costs.

🛠️ How Loans AU Can Help You Save More 💡

Did you know that the rates banks advertise aren't always their best offer? 🔍 At Loans AU, our expert mortgage brokers work directly with lenders to negotiate better deals—often securing variable rates lower than what’s publicly advertised.

This means you could save thousands over the life of your loan simply by letting a broker fight for you. Whether you’re a first-home buyer or a seasoned investor, we have access to exclusive rates and special offers from both major banks and non-bank lenders.

🔮 What’s Happening in 2025?

The Fixed vs Variable Home Loan 2025 landscape is shaped by:

  • Stabilising Inflation: Signs of steadier inflation across Australia.
  • Rate Cuts Ahead: Experts forecast a significant RBA rate cut cycle, starting mid-2025.
  • Hybrid Loan Growth: More borrowers are opting for split loans to balance security and flexibility.

Current market sentiment suggests variable loans may offer more upside in 2025, but fixed rates remain a solid choice for peace of mind—especially for risk-averse borrowers.

💡 Which One Should You Choose?

Choosing between fixed vs variable isn’t just about interest rates — it’s about your financial goals, risk tolerance, and future plans. Whether you're buying your first home, upgrading, or investing in commercial property, a tailored solution can save you thousands.

At Loans AU, we don’t just help you pick a loan—we help you negotiate the best possible deal to suit your unique needs.

🚀 Get Started Today!

👉 Want to find out what’s best for YOU?
Contact Loans AU for a free consultation today:
📞 0413-360-888
🌐 www.loansau.com/getstarted
💬 Chat with us on WhatsApp

#️⃣ #FixedvsVariableHomeLoan2025 #AustraliaHomeLoans #MortgageBrokers #CommercialLoans #LoansAU #FinanceTips #InvestSmarter #FirstHomeBuyerAustralia #InterestRates2025 #PropertyInvestment

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