The interest rate may vary throughout the loan’s term, as the name would imply. Although it gives you flexibility, doing so may expose you to rate increases. These loans provide more flexible options like offset accounts, redraw, and limitless additional repayments.

Part of your loan can be fixed, while the remaining portion can be variable.

These loans, also referred to as “honeymoon” loans, offer a reduced interest rate for a brief period of time (for example, a year), following which the rate switches to the usual variable rate.

A guarantor helps you buy your property sooner by using the equity they’ve accrued in an existing property. Guarantors could be your parents, grandparents, parents-by-marriage etc.