Whats the difference between a variable rate loan and a fixed rate loan?
A variable interest rate moves up and down with market conditions. Your loan repayments may increase or decrease to reflect interest rate changes. Variable rate loans provide you with flexibility to make additional repayments, redraw on those additional funds and take advantage of a 100% interest offset facility. A fixed interest rate will not change for the fixed rate period (choose a term from one to five years). Your repayments will remain constant, which can be useful for budgeting purposes. However, features such as unlimited additional repayments and 100% interest offset are not available with fixed rate loans.
