Fixed vs. Floating: The Honest Verdict

Most advisors hedge on this. After running the numbers across 10-year rate cycles, here's our view.

Floating wins on average

Across 10 cycles, floating rates have been 0.4–0.8% lower than fixed over the loan tenure.

When fixed makes sense

• Loan tenure is < 7 years
• You can't tolerate any EMI variability
• The fixed rate is within 0.25% of floating

Our recommendation

Go floating with a bank that lets you prepay without penalty. That's where the real flexibility is.