Is a fixed rate cheaper than a variable rate?

I always get asked, Scott, should I fix my loans or should I leave them variable? The numbers over the past 30, 40 years have always shown that the clients who have left the loans variable have always ended up better off. It's very difficult to time the market, but we're in a very unique situation at the moment where interest rates are the lowest they've ever been, ever. And my mum always told me what goes down must come up. So with that in mind, if we are at the bottom of the interest rate cycle, there's only one way rates can go and that is up. I really would be recommending potentially locking at least half of your loan. Why wouldn't fix your whole loan if it's your home loan, is purely simply because the banks limit the amount you can pay off your home loan debt each and every year. When it's fixed, it's frozen. So some banks say the most you can pay off your loan when it's fixed is $5,000 per year. Other banks say $20,000 per year. As you guys know, the amount you're paying off your debts each and every year is 20, 30, 40, $50,000 a year. So by fixing in your loan, it's really going to stall your debt reduction and it's going to stall the amount of equity you can create by paying that debt down. So my advice would be to fix in half. So you hedge your bets. You've got the best of both worlds. You've got your variable component, which you're paying down as rapidly as you possibly can, and then you've got your fixed component, which is set and forget. And it doesn't matter what rates are doing, you know you're going to be paying the same amount of interest each and every month for the next three years or five years. So my advice, split the loans half fixed, half variable. I think that's going to put you in best position financially.