Page 7 - Oz Credit And Finance Booklet

The variable rate loan offers more features and flexibility than the basic fixed rate loan, so the rate is usually slightly higher. Fixed rate loans are set at a fixed rate for a specified period – usually one to five years. This gives you the advantage of knowing how much your repayments will be, allowing you to orga- nise your finances without the risk of rising interest rates. However, this advantage is offset by the possi- bility of not benefiting from a drop in rates.
STANDARD VARIABLE & FIXED RATE LOANS