The Current Numbers
- Best Variable Rate: 5.25% (Finder, Aug 2025)
- Best 2-Year Fixed Rate: 4.84% (Finder, Aug 2025)
For a $600,000 loan over 30 years:
- Variable at 5.25% = ~$3,314/month
- Fixed at 4.84% = ~$3,163/month
Yes, fixing saves you around $3,617 over the next two years if rates don’t move. But that’s the key: rates are moving.
Why Fixing Is a Gamble
When you lock in a fixed rate, you’re essentially making a bet against the banks. And here’s the catch:
- Banks set fixed rates based on their deep economic modelling, access to wholesale markets, and insights far beyond what the average investor can access.
- If they’re offering 4.84% fixed, it’s because they expect variable rates to be lower in the near future — and they’re rarely wrong in the long run.
- By fixing, you’re betting that you know better than the banks.
The Case for Variable
✅ More flexibility – variable loans often allow extra repayments, offsets, and redraws.
✅ No break costs – you can refinance or sell without hefty penalties.
✅ Aligned with investor strategy – if your goal is tax efficiency, rentvesting, or building a long-term retirement plan, the flexibility of variable is invaluable.
When Might Fixing Still Work?
- If you absolutely need certainty in your repayments for the next two years.
- If your budget is stretched and you can’t risk even small fluctuations.
- If peace of mind outweighs the potential of saving more with falling rates.
But for most investors, the trade-off isn’t worth it.
The Bottom Line
Fixed rates can look tempting, but remember: if you fix, you’re betting against the banks. They have teams of economists, global intel, and decades of market data shaping those offers.
For property investors building a portfolio around retirement security, tax minimisation, rentvesting, and financial freedom, variable loans usually offer the balance of flexibility, opportunity, and lower long-term cost.
At Calla Property, we don’t just help you invest the right property — we help you with your structure to accelerate your portfolio growth and give you freedom, flexibility, and confidence for the future.
Easing inflation is creating fresh opportunities—now is the time to position yourself for success.