In the current financial market with the interest rates at an all time low, it is very tempting to stay on the variable rate. The other reason that people opt to stay on the variable rate is the uncertainty where the market is concerned. In Australia, in the past 18 months, cash rates were low and then went up regularly and then suddenly started going down again (source: RBA). Now no one is sure which way the movement is going to be. With the current media talk of recession, everyone is hoping for further downward movement and opting to stay on the variable rates.

Variable Rates

Having a home loan on a variable rate of interest gives more flexibility. Currently: