Fixed or Variable? Weighing Mortgage Options

0:00On this March 20th in Sydney, here's what is making headlines. The Reserve Bank of Australia raised the cash rate this week, fueling debate on whether homeowners should fix part or all of their mortgage to shield. Against more hikes, fixed rates lock in payments for one to five years, while variable ones shift with market changes. Experts say there's no universal answer, as it depends on each household's finances and professional advice is key. Fixed options provide repayment certainty for easier budgeting and could save on interest if rates climb higher. Variable rates offer flexibility, like offset accounts that cut interest using savings, but they expose borrowers to sudden jumps. Right now, fixed rates are close to variable ones, though market expectations can tip the scale slightly. Mortgage brokers recommend acting fast by shopping around or switching lenders, as new customers often snag better deals that offset recent increases. Economists call fixing a smart hedge amid inflation risks

1:00from global tensions, though it helps home buyers by cooling hot property markets. Not everyone qualifies for refinancing, with debt help lines reporting over 15,000 calls last February of 9% from last year. More employed people are struggling to cover mortgages alongside essentials, turning to services for guidance. Lenders offer hardship programs that vary by bank, so reaching out early makes sense, along with free help from groups like the National Debt. Help line, staying proactive keeps options open as pressures build.