To help us understand the variable and fixed home investment loan terms better, Mortgage Choice lists the benefits and disadvantages of both.

The pros of the Fixed are :

• The repayment is steady for the definitive term
• Borrowers have confidence
• Budgeting on a long-term basis makes it simple for borrowers

The cons of the Fixed are :

• The rate of interest is a little higher
• The loan features aren’t aplenty
• The chance of variable rates falling over the set term

The pros of the Variable are :

• The rate of the interest is a little lower
• The loan features are lots
• The payments are lower should IRs increase

The cons of the Variable are :

• Payments could be higher should IRs increase
• Budgeting for a long term can be tough
• With rate rumination, an absence of sense of security may develop

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