What are the different types of home loan?

There are two basic types of home loan. The most popular type is standard variable. The rate can change throughout the life of the loan. A fixed rate loan has the rate set for a particular length of time. Some lenders will allow borrowers to combine a fixed rate element and a variable rate portion in one loan.

Borrowers can also choose a packaged loan with other features like offset, redraw and credit card. A basic loan or discount loan is cheaper, usually with less features.

Source: infochoice.com.au

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