Fixed vs variable rate
A fixed-rate loan keeps the same interest rate for an agreed period; a variable (or adjustable) one moves with a reference rate, usually the central bank's. It decides how fast a rate change reaches borrowers.
Example
Most Australian home loans are variable, so the RBA's rise to 4.85% on 3 November 2026 reached household budgets within weeks; most US mortgages are fixed for 30 years.
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