Home Loans Variable Interest Rates

This is a common offer by banks and has been used by many people to buy their first homes. These home loans have repayment periods of up to 30 years and are regularly used by home buyers today.


Pros:

   When interest rates fall, repayments fall
   Extra repayments - these are usually allowed at any time.
   Offset - it may have the ability to offset credit balances held in other accounts at the same institution against the principal of the loan.
   Often has more features such as redraw facilities

Cons:

   When interest rates rise, so do your repayments
   The extra features may cost you more