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A common trap many homeowners fall into is considering a home loan as ‘set and forget’. At one point in time you did your research, shopped around, found the right option and now you’re reluctant to revisit the process – even if your personal circumstances have dramatically changed.

Different loan types suit different age groups, different living situations and even different attitudes towards money.

Before you start shopping around for a new loan, or an upgrade to your current loan, it’s worth understanding the different options and features available to you. The most common differentiators tend to be variable, fixed, and combo rate loans:

• A variable rate loan offers greater flexibility than a fixed-rate loan and will appeal to you if you don’t want one interest rate to be locked in for a set term. Often with variable rate loans, you have the ability to redraw or make additional payments at no extra cost - making it easier to pay off your home loan sooner!
  
  
• A fixed rate loan could be right for you if you need greater peace of mind, as you will have the certainty of knowing what your exact repayments will be during the fixed rate term. You can often choose different terms on a fixed rate loan – commonly between 1 and 5 years, depending on what the lender is offering and what suits you at the time.
  
  
• Combo rate loans offer both the flexibility of a variable rate and the certainty of repayments offered by a fixed rate. As is the case with a variable rate loan, you will have the flexibility to make additional repayments at no extra cost to the variable rate portion of the payment. 

Your mortgage broker will lend a helping hand when it comes time to make this important decision based on cost, convenience, and flexibility specific to your situation.

Given your broker has access to an extensive range of loans from a wide range of lenders, they should be your first point of call to obtain independent, unbiased advice based on their expertise and experience in the industry.

The interest rate is a major feature and one of many home loan features your broker will discuss with you at your appointment.

Get in touch today and find the right the right home loan features for you!