The most popular full feature home loans, the interest rate is not locked in and moved up and down depending on the  the Reserve bank of Australia's official interest rate and market funding costs. Generally speaking, over the life of the loan borrowers can take advantage of lower rates, but also run the risk of paying higher rates should the official rate increase.

 However some lenders may choose not to pass the full rate drop if any at all even when the official rate goes down, and this could be due to change in economy, increase in lenders profit and many other factors. So it's important you speak to one of our shape home loans consultant before deciding on this product.

Benefits:

·          If interest rates drop, repayments usually comes down respectively.

·          Choose Pay off home loans faster by making extra repayments without incurring penalties

·          Additional repayments can usually be taken back for unforeseen circumstances - redraw.

·          Plenty of features available to suit individual needs.

Points to Consider:

·          If interest rates rise, repayment will rise along with the amount of interest paid.

·          Extra features means you may pay a higher (0.2-0.5%) interest rate than a basic variable loan