Fixed or variable: Choosing the right home loan
If you are borrowing more than 80 per cent of the value of the house, your lender will ask you to get a lenders mortgage insurnace. Source: Getty Images/ Ariel Skelley
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A variable loan offers more flexibility and comes with redraw and offset facilities, whereas a fixed-term loan keeps the interest repayments stable during the fixed term. But if you need to break the fixed term, the extra cost may be significant.
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