• The interest rate can vary throughout the term of the loan - both up and down
• The term is usually 25 to 30 years
• Advantages:
  • If interest rates fall, your repayments will also come down
  • Additional repayments without incurring a penalty, allowing you to pay off your loan faster
  • You can "redraw" the additional repayments if required
  • 100% Offset Account available with selected lenders / products
  • Interest rate discounts available with selected lenders
• Disadvantages:
  • If interest rates rise, your repayments rise as well.

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