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Interest Rates : Fixed or Variable?

Craig Sharp:             Interest rates, fixed or variable, what does it mean?

Terry Christo:             With a fixed rate it’s fixed for a term, you can’t fix for 30 years, but you can fix for three, five, seven years.

Craig Sharp:             My payment each month is going to be exactly the same?

Terry Christo:             Exactly the same for that period of time. With a variable rate it can change at any point and time, as influenced by the reserve bank and also the banks themselves, and finances, and how they want to move their rates around.

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