What’s the difference between a variable or a fixed loan?
At ubank, we offer both variable and fixed loans. A variable interest rate can go up and down at any time during the life of your loan. With variable loans, you’ll have more flexibility to increase your repayments. Any additional payments you make will appear as available credit in your loan account (otherwise known as redraw), and you can redraw your additional payments into your ubank accounts whenever you like.
A fixed home loan locks in an interest rate for the entirety of your chosen fixed term. If you’re on a fixed loan and repaying principal and interest (P&I), you will have the exact same repayments during your fixed term. If you’re on a Flex fixed loan, you can make additional payments up to $20K at no extra cost during your fixed term which you can redraw into your ubank account when needed. If you make more than $20K in additional payments during your fixed term, you may be charged break costs.