Ideal for budget-conscious buyers and first-timers, it offers certainty as your rate stays constant, regardless of the Reserve Bank of Australia's (RBA) official rate fluctuations. This allows for easier budgeting, knowing your mortgage cost for the agreed term.

However, if the RBA reduces rates, you could end up paying more than with a variable rate. There may also be break costs for early loan payout and restrictions on additional repayments.